Mirae Asset Lists Two New TIGER ETFs

Mirae Asset Global Investments announced on the 23rd that it will newly list two ETFs on the Korea Exchange: the ‘TIGER US S&P500 Equal Weight ETF’ and the ‘TIGER Semiconductor TOP10 Leverage ETF’.

The ‘TIGER US S&P500 Equal Weight ETF’ is an ETF that invests equally (0.2% each) in the constituent stocks of the S&P500 index, which represents US investments. This is the first time that an S&P500 equal weight investment ETF listed in the US, Europe, Canada, and Australia has been listed in an Asian country.

Recently, the S&P500 index has been driven by large tech stocks such as Microsoft, Apple, Nvidia, and Google, known as the ‘Magnificent 7 (M7),’ intensifying concentration in a few stocks and raising concerns about a correction. The ‘TIGER US S&P500 Equal Weight ETF’ is expected to meet the demand for diversified investment in representative US stocks.

The ‘TIGER US S&P500 Equal Weight ETF’ employs a strategy of rebalancing four times a year, reducing the weight of rising stocks (realizing gains) and increasing the weight of declining stocks (buying at low prices), which can lead to excellent long-term performance. Additionally, it has a relatively higher proportion of mid- and small-cap stocks, making it an effective investment strategy for the upcoming interest rate cut cycle.

The ‘TIGER Semiconductor TOP10 Leverage ETF’ is the first leveraged ETF in Korea to invest in the semiconductor sector. It is the leveraged version of Korea’s largest representative semiconductor ETF, the ‘TIGER Fn Semiconductor TOP10 ETF (396500).’

Tracking twice the daily return of the underlying index, the ‘FnGuide Semiconductor TOP10 Index,’ the ‘TIGER Semiconductor TOP10 Leverage ETF’ includes Samsung Electronics and SK Hynix with a total weight of 50%, and the remaining eight stocks such as Hanmi Semiconductor and Ligno Industrial are included using a free-float market capitalization weighting method. This allows for more concentrated investment in the domestic semiconductor industry, including leading semiconductor companies and materials, parts, and equipment firms expected to benefit from AI.

Leverage investors aiming to maximize returns previously had to choose ETFs like the KOSPI200 Leverage ETF, which has a high weighting of Samsung Electronics in the semiconductor sector, but with the listing of the ‘TIGER Semiconductor TOP10 Leverage ETF,’ they can invest with leverage in the semiconductor sector, which is expected to trend upward in the long term.

Namgi Kim, Vice President and Head of ETF Management at Mirae Asset Global Investments, said, "The new products will provide a solution for investors who want to invest in the US market while maximizing the effect of diversified investment."

Mirae Asset Global Investments will hold a listing commemorative event for trading customers to celebrate the launch of the new ETFs. Detailed event information can be found on the securities firms’ websites.