Mirae Asset Management Launches New 'TIGER CD Geumri Plus Active ETF'

Mirae Asset Global Investments announced on the 17th that it will newly list the ‘TIGER CD Interest Rate Plus Active (Synthetic) Exchange-Traded Fund (ETF)’ on the Korea Exchange.

The ‘TIGER CD Interest Rate Plus Active (Synthetic) ETF’ is a ‘monthly dividend interest-type ETF’ that pays out the interest accrued daily as monthly dividends. It pays an additional interest of up to approximately 0.1% per annum on top of the 91-day CD yield if the Consumer Price Index (CPI) rises or remains flat compared to the previous month. If the CPI falls compared to the previous month, only the base 91-day CD interest rate is paid.

Unlike existing interest rate ETFs, the ‘TIGER CD Interest Rate Plus Active (Synthetic) ETF’ distributes all the interest accrued daily at the end of each month. Amid expectations that the domestic market will continue to experience high inflation and high interest rates due to the Trump 2.0 era’s high tariff policies and the ‘America First’ stance in 2025, investors are expected to be able to respond to a high interest rate, high inflation, and high volatility market environment through steady interest income and monthly dividends.

The total expense ratio is 0.0098% per annum, which is among the lowest levels for interest rate ETFs listed domestically. Due to the nature of interest rate ETFs, fees and other costs have a significant impact on returns, so this is expected to contribute to an increase in investors’ actual returns. In particular, since additional interest is paid when certain conditions are met, additional returns can be expected compared to existing interest rate ETFs.

The ‘TIGER CD Interest Rate Plus Active (Synthetic) ETF’ can be invested in 100% through retirement pension accounts (DC, IRP). As a monthly dividend product based on interest rates, it can be used to build a steady cash flow pipeline when investing through pension accounts. Due to the nature of pension accounts, not only is there a tax deferral effect, but when received as a pension in the future, a low pension income tax of 3.3 to 5.5% is applied, which is expected to result in higher actual returns. Additionally, due to the nature of ETFs, there are no early redemption fees and trading costs are low, making it possible to use it as a ‘parking-type ETF’ that utilizes cash assets such as funds waiting to be invested.

Mirae Asset Global Investments is holding a listing commemorative event for trading customers to celebrate the launch of the ‘TIGER CD Interest Rate Plus Active (Synthetic) ETF.’ Some customers who meet the daily trading conditions for this ETF at KB Securities and LS Securities will receive cultural gift certificates. Detailed event information can be found on each securities company’s website. From December 17 to 31, a holding event for the ‘TIGER CD Interest Rate Plus Active (Synthetic) ETF’ will also be held on the TIGER ETF website.

Seungho Jeong, head of the FICC ETF Management Team at Mirae Asset Global Investments, said, “Interest rate ETFs that steadily accumulate interest by utilizing high interest rates are gaining attention amid ongoing high inflation and highly volatile markets with great uncertainty,” adding, “Investors who want to use cash assets more efficiently and those who want to manage their retirement pension accounts stably can actively consider using the ‘TIGER CD Interest Rate Plus Active (Synthetic) ETF.”