'TIGER Money Market Active ETF' Surpasses 800 Billion KRW in Net Assets

"The Optimal Solution for Managing Short-Term Funds Amid Falling Interest Rates"

Mirae Asset Global Investments announced on June 11 that the net asset value (NAV) of the 'TIGER Money Market Active ETF' has surpassed 800 billion KRW.

According to the Korea Exchange, as of June 10, the NAV of the TIGER Money Market Active ETF stood at 837.9 billion KRW. Since its initial listing on April 22, the ETF has consistently attracted interest from individual investors. The NAV exceeded 800 billion KRW just seven trading days after surpassing 500 billion KRW on May 27.

With prolonged market volatility, individual investors are turning to the TIGER Money Market Active ETF as a short-term safe haven for their funds. The TIGER Money Market Active ETF is a short-term fund-type ETF that invests in ultra-short-term bonds and commercial papers (CP) with a remaining maturity of less than three months. Based on an active strategy, it selects high-yield assets to pursue returns in excess of its benchmark. The average duration is approximately 0.15 years, minimizing interest rate risk.

As of June 10, the expected yield to maturity (YTM) of the TIGER Money Market Active ETF is 2.73%. This is among the highest levels for money market ETFs listed in Korea, and it also offers higher expected returns compared to other parking-type products. Since the beginning of the year, short-term interest rates have declined, with current 91-day certificate of deposit (CD) and Korea Overnight Financing Repo Rate (KOFR) at around 2.5% to 2.6%, and 6-month time deposit rates at around 2.4%. The total expense ratio of the TIGER Money Market Active ETF is 0.040%, maximizing potential investment returns.

Kim Dongmyung, Head of Fixed Income ETF Management at Mirae Asset Global Investments, stated, "With the recent trend of interest rate cuts, the expected returns on deposits, savings accounts, and even existing fixed-income ETFs are generally declining. The TIGER Money Market Active ETF will be the optimal investment vehicle for short-term idle funds or cash awaiting investment."