Mirae Asset's 'TIGER US S&P 500 Equal Weight ETF' Gains Popularity

Mirae Asset Global Investments announced on the 10th that the ‘TIGER US S&P500 Equal Weight ETF’ has recorded superior returns compared to market benchmark index ETFs, ranking first in cumulative net purchases by individual investors among equal weight ETFs listed domestically.

According to the Korea Exchange, as of the closing price on the 8th, the cumulative net purchase amount by individuals since the listing of the ‘TIGER US S&P500 Equal Weight ETF’ is 27.6 billion KRW. This is the largest scale among domestically listed ETFs using the equal weight strategy during the same period.

The high preference of individual investors for the ‘TIGER US S&P500 Equal Weight ETF’ is due to its excellent returns. As of the 8th, the ETF’s return since listing is 2.62%. This significantly outperforms the ‘TIGER US S&P500 ETF,’ which tracks the US market benchmark index and recorded a return of -0.18% during the same period.

The ‘TIGER US S&P500 Equal Weight ETF’ invests equally (0.2% each) in the constituent stocks of the S&P500 index, which represents US investments. Through quarterly rebalancing, it reduces the weight of rising stocks (realizing gains) and increases the weight of declining stocks (buying at lower prices), a strategy that can deliver superior long-term performance. Since 1990, the S&P500 Equal Weight Index has achieved a 724% excess return compared to the current S&P500 Index, recording higher long-term returns.

Amid increased price volatility of global big tech companies recently, the ‘TIGER US S&P500 Equal Weight ETF,’ which has relatively low concentration in specific stocks/sectors, demonstrated price resilience through diversification effects and recorded outstanding performance compared to ETFs tracking the US benchmark index. Large tech stocks that drove the US stock market from last year through the first half of this year have shown high volatility due to concerns over economic recession in the second half. Over the past three months, major US big tech stocks have declined: Microsoft by 11%, Alphabet by 13%, and Amazon by 8%.

Ham Min-jung, manager of the ETF Management Division at Mirae Asset Global Investments, introduced, "The TIGER US S&P500 Equal Weight ETF is suitable for investors who want exposure to the S&P500 stocks representing the US but are concerned about the high volatility of big tech stocks." She added, "Considering the current concentration level in the US stock market and the macroeconomic situation entering a rate cut phase, it is an attractive product both in the short term and long term."