The TIGER US Ultra-Short-Term (3 Months or Less) Treasury ETF is a "Korean version of the SGOV ETF," tracking the same underlying index as BlackRock's "iShares Ultra-Short Treasury Bond (SGOV)" ETF, which is managed by the world's largest asset management firm. The SGOV ETF, with total assets of $44.8 billion (approximately 64 trillion KRW), is a short-term fund product that invests in US Treasury bonds with a remaining maturity of three months or less. It distributes bond interest monthly in the form of dividends, making it highly popular among domestic and international investors.
US ultra-short-term Treasuries have recently attracted attention as a stable investment option, as even long-term bond yields have become unstable due to recent financial market volatility. The TIGER US Ultra-Short-Term (3 Months or Less) Treasury ETF is the first product in Korea to invest 100% in US ultra-short-term Treasuries. The investment allocation is 30% in US ultra-short-term Treasuries and 70% in US ultra-short-term Treasury ETFs. By focusing on US ultra-short-term Treasuries, which are considered safe assets, investors can secure both liquidity and stability. The duration is approximately 0.12 years, minimizing risk from interest rate fluctuations, and the total management fee is as low as 0.09% per year, aiming for stable interest income.
The "TIGER US Ultra-Short-Term (3 Months or Less) Treasury ETF" is a monthly dividend ETF that pays distributions every month. Investors can use it as a means to generate steady monthly cash flow during periods of high volatility, or as a short-term fund product for managing idle funds over a short period.
Unlike investing in the SGOV ETF listed in the US, the "TIGER US Ultra-Short-Term (3 Months or Less) Treasury ETF" can be traded in real time during Korean market hours. Since investors can use their existing KRW accounts and invest in KRW, this reduces the inconvenience and costs associated with currency exchange.
Kim Jinha, Head of Global Fixed Income at Mirae Asset Global Investments, explained, "This product invests 100% in US ultra-short-term Treasuries and minimizes credit and duration risk, making it suitable for investors who want to manage short-term investment funds or idle funds safely and with liquidity."
He added, "In the current environment of heightened volatility, investors can expect not only interest income but also potential appreciation of dollar-denominated assets through the TIGER US Ultra-Short-Term (3 Months or Less) Treasury ETF."
To commemorate the launch of the TIGER US Ultra-Short-Term (3 Months or Less) Treasury ETF, Mirae Asset Global Investments will hold a listing event for trading customers. Until May 30, some customers who meet the daily trading conditions for the ETF at Daishin Securities will receive a cultural gift certificate. Detailed information about the event can be found on each securities firm's website.
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