Mirae Asset Management's 'TIGER REITs Real Estate Infrastructure ETF' Surpasses 500 Billion KRW in Net Assets

Mirae Asset Global Investments announced on the 13th that the net assets of the ‘TIGER REITs Real Estate Infrastructure Exchange Traded Fund (ETF)’ have surpassed 500 billion KRW.

According to the Korea Exchange, as of the closing price on the 12th, the net assets of the ‘TIGER REITs Real Estate Infrastructure ETF’ stand at 526.6 billion KRW. This is the largest scale among REITs ETFs listed domestically. The net assets, which were 328.5 billion KRW at the end of last year, have increased by about 200 billion KRW in just over seven months this year. The cumulative net purchase by individuals since the beginning of the year is 81.8 billion KRW. Steady capital inflow continues.

The ‘TIGER REITs Real Estate Infrastructure ETF’ is the first REITs ETF listed in Korea, launched in July 2019, and currently the largest REITs ETF in the country. It selects and diversifies investment in high-quality assets with a market capitalization of over 200 billion KRW among domestically listed REITs, infrastructure, and real estate funds. The total expense ratio is 0.08% per year, which is the lowest among domestic REITs ETFs. Investors can easily invest in the overall domestic REITs market at a low cost.

Additionally, the ‘TIGER REITs Real Estate Infrastructure ETF’ is a monthly distribution ETF that pays dividends based on rental income generated from REITs’ assets such as offices, hotels, and logistics warehouses. As of the 12th, the total dividend per share paid over the past year is 338 KRW. The annualized dividend yield reaches 7.2%.

REITs are representative assets that benefit from interest rate cuts, as real estate loan interest rates tend to decline and stabilize, leading to expectations of stock price increases. Supported by such expectations of interest rate cuts and government policy support, the ‘TIGER REITs Real Estate Infrastructure ETF’ has maintained a favorable trend even amid recent volatile markets, improving investor sentiment. As of the 12th, the ETF’s year-to-date return (total return basis) is 13.7%, significantly outperforming the KOSPI index (-0.41%) over the same period.

Oh Dong-jun, team leader of the Strategic ETF Management Division at Mirae Asset Global Investments, said, “With reduced capital costs due to interest rate cuts, profitability is expected to improve, and policy support such as REITs revitalization measures is enhancing the investment environment in the REITs market. The ‘TIGER REITs Real Estate Infrastructure ETF’ is a product that can simultaneously pursue the benefits of rising REIT asset values due to interest rate cuts and steady income returns.”