Mirae Asset Launches New TIGER US Defense TOP10 ETF

Mirae Asset Global Investments announced on the 29th that it will newly list the ‘TIGER US Defense TOP10 ETF’ on the Korea Exchange.

The TIGER US Defense TOP10 ETF selects and invests in the top 10 US defense-related stocks dominating the global market. It focuses on global defense companies such as Lockheed Martin, RTX, Northrop Grumman, and General Dynamics. As of the 28th, the total investment weight of these four stocks is 70.5%, the highest level among US defense ETFs launched domestically. In addition, it includes global defense companies such as L3Harris Technologies, Boeing, and Huntington Ingalls.

Amid growing geopolitical risks worldwide, including the Russia-Ukraine war and conflicts in the Middle East, the TIGER US Defense TOP10 ETF invests in US defense companies, expecting to be the biggest beneficiary. US defense companies hold an advantage through advanced technology and economies of scale, resulting in price competitiveness. The US defense budget accounts for about 40% of the global total, and the sales of US defense companies represent about 37% of the world’s top 100 defense contractors. Offshore defense sales are also rapidly increasing.

Furthermore, the US defense industry is one of the bipartisan beneficiary sectors, and greater growth of the TIGER US Defense TOP10 ETF is expected after the US presidential election. Although the US Republican and Democratic parties have different policy approaches in areas such as economy, society, and environment, defense, security, and foreign policy are expected to act as positive factors for the US defense industry.

To commemorate the launch of the TIGER US Defense TOP10 ETF, Mirae Asset Global Investments is conducting a listing celebration event for trading customers. Customers who meet the daily trading conditions of the ETF at SK Securities and Eugene Investment & Securities will receive cultural gift certificates through a lottery and other methods. Detailed event information can be found on each securities firm's website.

Kim Min-su, manager of the FICC ETF Management Division at Mirae Asset Global Investments, said, "Looking at six US presidential election periods since 2000, the defense industry not only outperformed the representative index but also recorded better average performance compared to other sectors," adding, "If you want to invest in US defense companies expected to enter a new cycle after the US presidential election, you should pay attention to the TIGER US Defense TOP10 ETF."