Mirae Asset Lists New TIGER Money Market Active ETF

Mirae Asset Global Investments announced on April 22 that it will newly list the 'TIGER Money Market Active ETF' on the Korea Exchange.

The TIGER Money Market Active ETF is a short-term fund-type ETF that invests in ultra-short-term bonds and commercial paper (CP). While its investment portfolio, including asset selection and duration, is similar to existing Money Market Funds (MMFs), it offers relatively lower fees and more flexible management guidelines compared to MMFs, allowing for the potential of excess returns.

The ETF is based on the 'KIS-Mirae Asset MMF Index.' It includes short-term bonds such as government, monetary stabilization, and regional development bonds, as well as domestic bonds with a credit rating of AA- or higher, provided the outstanding balance is at least 50 billion KRW and the remaining maturity is six months or less. By focusing investment on short-term assets with an average duration of around 0.15 years, the ETF can minimize interest rate risk even during periods of interest rate fluctuation. With stock market volatility having increased significantly since the inauguration of the second Trump administration in the United States, the TIGER Money Market Active ETF offers an efficient way to manage short-term funds in volatile markets.

As an active ETF, the TIGER Money Market Active ETF seeks excess returns through proactive management based on market conditions. While MMFs face operational constraints such as limits on remaining maturity and investment proportions by credit rating, the TIGER Money Market Active ETF has relatively fewer restrictions and applies mark-to-market valuation, which can result in higher returns compared to conventional MMFs. The total expense ratio for the TIGER Money Market Active ETF is 0.040%, which is lower than that of existing MMFs, providing an additional advantage.

The TIGER Money Market Active ETF can be fully allocated as a safe asset in retirement pension accounts. As a bond-type fund designed to minimize interest rate risk, it is expected to enable stable management of idle or standby investment funds.

Mirae Asset Global Investments has established itself as a leader in short-term fund-type ETFs by introducing a variety of products, including the nation's first CD rate-tracking ETF, 'TIGER CD Rate Investment KIS (Synthetic) ETF,' as well as the 'TIGER CD 1-Year Rate Active (Synthetic) ETF' and the 'TIGER KOFR Rate Active (Synthetic) ETF.'

Kim Dongmyung, Head of Fixed Income ETF Management at Mirae Asset Global Investments, said, "The TIGER Money Market Active ETF is expected to become a new tool for short-term fund management, leveraging Mirae Asset Global Investments' expertise in short-term fund operations and its proprietary risk management system." He added, "Investors looking to manage standby investment funds stably amid market volatility or those seeking more stable management of retirement pensions can consider utilizing the TIGER Money Market Active ETF."

To commemorate the launch of the TIGER Money Market Active ETF, Mirae Asset Global Investments is holding a listing event for trading customers. Until May 16, select customers who meet the daily trading conditions for this ETF at Eugene Investment & Securities will receive a gift certificate.