Mirae Asset's Four Maturity-Matching TIGER ETFs Surpass Total Net Assets of 1 Trillion Won

Mirae Asset Global Investments announced on the 11th that the total net assets of the four maturity-matching TIGER ETFs have surpassed 1 trillion KRW.

According to the Korea Exchange, as of the closing price on the 10th, the net assets of the ‘TIGER 24-10 Corporate Bond (A+ and above) Active ETF’ amount to 528.8 billion KRW. This ETF, which primarily invests in corporate bonds rated A+ or higher maturing in October 2024, is a flagship product of the maturity-matching TIGER ETF series. Since its listing in November last year, it has maintained strong buying momentum amid high interest rates on corporate bonds.

Amid strong investor interest in corporate bonds, the ‘TIGER 25-10 Corporate Bond (A+ and above) Active ETF (453540)’ and the ‘TIGER 24-04 Corporate Bond (A+ and above) Active ETF (453530)’ have also grown to net assets of 201.6 billion KRW and 130.6 billion KRW, respectively. The ‘TIGER 23-12 Government and Public Bonds Active ETF (447780)’, which invests in government and public bonds, has also shown steady growth with net assets of 163.9 billion KRW.

Maturity-matching ETFs are products that can realize the expected yield at the time of purchase if held until maturity, regardless of market interest rate fluctuations. Additional purchases can be made until maturity, and if interest rates rise compared to the initial listing, purchases can be made at the higher maturity yield level. During periods of declining interest rates after listing, profits can be earned through early sales.

Since their debut in Korea last year, maturity-matching ETFs have rapidly increased in net asset size, supported by the popularity of bond investments. In particular, as the recent trend of interest rate hikes has ended, funds have been actively flowing into long-term bond ETFs. Among the maturity-matching TIGER ETFs, the ‘TIGER 25-10 Corporate Bond (A+ and above) Active ETF’, which has the longest maturity, attracted the most funds among the 12 maturity-matching ETFs listed domestically during the period from its listing on March 23 to the 10th. On the day of listing, this ETF recorded a net purchase of 7.3 billion KRW by individuals, ranking first in individual net purchases on the listing day this year, drawing significant attention.

Jung Seung-ho, manager of the ETF management division at Mirae Asset Global Investments, said, “Compared to investing in individual bond issues, maturity-matching ETFs offer many advantages such as liquidity, fees, and diversification, so we expect maturity-matching ETFs to grow further.” He added, “TIGER ETFs, which have the largest lineup of maturity-matching ETFs in Korea, will continue to strive to introduce products with various maturities to expand investors’ choices.”

Meanwhile, Mirae Asset Global Investments manages ETFs worth 120 trillion KRW globally, including 34 trillion KRW domestically, following Chairman Park Hyun-joo’s acquisition of Global X in 2018.