Mirae Asset's TIGER KOFR Interest Rate Reactive (Synthetic) ETF Surpasses 500 Billion KRW in Net Assets

Mirae Asset Global Investments announced on the 20th that the net assets of the ‘TIGER KOFR Geumri Active (Synthetic) ETF’ have surpassed 500 billion KRW.

According to the Korea Exchange, as of the closing price on the 17th, the net assets of the ‘TIGER KOFR Geumri Active (Synthetic) ETF’ stand at 543.3 billion KRW. This ETF has rapidly grown since its listing in November last year, gaining attention as a stable investment option in a highly volatile market.

The ‘TIGER KOFR Geumri Active (Synthetic) ETF’ tracks the Korea Overnight Financing Rate (KOFR), which is published daily by the Korea Securities Depository. KOFR is an interest rate index based on actual transactions, calculated from repurchase agreement (RP) trading data secured by government bonds and monetary stabilization bonds with a one-business-day maturity. Due to its short maturity, KOFR closely reflects the risk-free rate and is highly reliable and stable because it is based on real transactions, making manipulation unlikely.

Due to its high stability and other attractive features, the ‘TIGER KOFR Geumri Active (Synthetic) ETF’ is gaining attention among investors as a ‘parking ETF’ that can replace bank deposits, showing a trend of increasing net assets. Composed of overnight instruments, it immediately reflects interest rate fluctuations and, unlike bank deposits, can be easily liquidated through sales. Additionally, compared to major bond and short-term financial product ETFs listed domestically, it has the advantage of a low total expense ratio (0.03%). Further benefits include tax deferral until withdrawal and tax credits when traded through ISA (brokerage type), personal pension, and retirement pension (DC/IRP) accounts.

Jung Seung-ho, manager of the ETF Management Division at Mirae Asset Global Investments, said, “The TIGER KOFR Geumri Active (Synthetic) ETF is an appropriate ETF for managing standby funds during times of high stock market uncertainty,” adding, “Unlike typical parking accounts or time deposits, it offers the advantage of compound interest, making it highly competitive.”