Mirae Asset Changes Names of Three TIGER US Representative Index TR ETFs

Mirae Asset Global Investments announced on April 25 that it will change the names of three TIGER US representative index total return (TR) ETFs.

For the TR-type overseas ETFs?TIGER US S&P500TR(H) ETF, TIGER US Nasdaq100TR(H) ETF, and TIGER US Nasdaq100TR Bond Mixed Fn ETF?the "TR" designation will be removed from their names. The new names will be TIGER US S&P500(H) ETF, TIGER US Nasdaq100(H) ETF, and TIGER US Nasdaq100 Bond Mixed Fn ETF. This change is in accordance with the "2024 Tax Law Amendment Follow-up Enforcement Decree," which the Ministry of Economy and Finance implemented in January, requiring overseas TR-type ETFs to settle and distribute interest and dividend income at least once a year.

Distributions for the TIGER US S&P500(H) ETF and TIGER US Nasdaq100(H) ETF will begin this month. Previously, dividends were reinvested, but going forward, interest and dividend income generated each quarter will be distributed in cash.

Starting with the first distribution on May 7, future distributions will be made quarterly, based on the last day of January, April, July, and October. Investors are expected to benefit from a stable cash flow and gain greater flexibility in portfolio management. The TIGER US Nasdaq100 Bond Mixed Fn ETF, which previously made quarterly distributions based only on bond interest income, will now also distribute income from its equity holdings.

The TIGER US S&P500(H) ETF and TIGER US Nasdaq100(H) ETF invest in the S&P500 and Nasdaq100 indices, respectively, which are representative US indices. These products use currency hedging to minimize risks arising from fluctuations in the KRW-USD exchange rate. As KRW-USD exchange rate volatility has increased this year, these ETFs have attracted attention as a way to invest in the US market without currency exposure. As of April 24, the cumulative net purchases by individual investors in these two ETFs since the beginning of the year exceeded KRW 50 billion. The TIGER US Nasdaq100 Bond Mixed Fn ETF invests in both Nasdaq100 stocks and bonds, aiming to achieve both growth and stability as a bond-mixed ETF.

Kim Namho, Head of Global ETF Management at Mirae Asset Global Investments, stated, "By removing 'TR' from the ETF names, we can more clearly convey the nature of the investment targets," adding, "Quarterly distributions will provide investors with stable cash flows." He also noted, "In the current strong dollar environment, US ETFs with currency hedging can be a more attractive option."

Mirae Asset Global Investments offers a wide lineup of TIGER ETFs that allow investment in major US indices. The currency-exposed TIGER US S&P500 ETF and TIGER US Nasdaq100 ETF are each the largest in Asia and have become the primary means for domestic investors to invest in US stocks.