Mirae Asset Global Investments announced on the 20th that as of the end of last month, two types of ‘TIGER US Representative Index ETFs’ recorded the lowest actual expense ratios compared to similar funds.
According to the Korea Financial Investment Association, as of the end of February, the actual expense ratio of the ‘TIGER US S&P500 ETF (360750)’ is 0.1265%, the lowest among S&P500 investment ETFs listed domestically. The ‘TIGER US Nasdaq100 ETF (133690)’ also showed the lowest expense ratio among similar funds at 0.1531%.
The actual expense ratio is a figure that combines the total fees with other costs incurred during fund management, as well as trading and brokerage commission rates. It represents the total cost borne by the actual investor. Since the actual expense ratio accumulates over long-term ETF investments and affects returns, it is considered an important factor to consider especially when investing through pension accounts.
The two types of ‘TIGER US Representative Index ETFs’ recorded the highest returns among similar funds in February due to their low actual expense ratios. In February, all domestically listed S&P500 and Nasdaq100 index-tracking currency-open ETFs were aligned based on ‘Price Return’, enabling direct comparison of returns among similar funds.
Amid the US stock market correction, while the ‘S&P500’ and ‘Nasdaq100’ indices recorded negative returns, the ‘TIGER US Representative Index ETFs’ minimized the decline. As of the end of February, the one-month returns were -2.647% for the ‘TIGER US S&P500 ETF’ and -3.697% for the ‘TIGER US Nasdaq100 ETF’, the best returns among domestically listed ETFs tracking the S&P500 and Nasdaq100, respectively.
Mirae Asset Global Investments, leading the US investment ETF market, is striving to expand opportunities for more investors to invest in US stocks. In particular, it has focused on reducing actual expense ratios to enable investment in US representative indices at minimal cost. To this end, in February, it lowered the annual total fees of the two representative US market ETFs from 0.07% to 0.0068%, introducing a policy to return benefits to investors. Along with this, the large scale of assets under management is creating a synergy effect, further reducing investor burdens. As of the 19th, the net assets of the ‘TIGER US S&P500 ETF’ and the ‘TIGER US Nasdaq100 ETF’ are 7.6 trillion KRW and 4.4 trillion KRW, respectively, making them the largest in Asia.
Kim Nam-gi, Vice President and Head of ETF Management Division at Mirae Asset Global Investments, explained, "The effect of fee reductions to enhance benefits for TIGER ETF investors is reflected in the decrease of actual expense ratios and improvement of fund returns." He added, "TIGER ETFs will continue to create an era where investors can invest in Asia’s largest S&P500 and Nasdaq100 ETFs at minimal cost by minimizing other costs and trading expenses."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
