TIGER REITs Real Estate Infrastructure ETF Ranks No. 1 in REITs ETF Returns Year-to-Date

Mirae Asset Global Investments announced on June 12 that the 'TIGER REITs Real Estate Infrastructure ETF' has recorded the highest return among domestic REITs investment ETFs since the beginning of the year.

According to Koscom ETF Check, as of June 11, the TIGER REITs Real Estate Infrastructure ETF posted a return of 8.92%, the highest among domestic REITs investment ETFs. The investment appeal of REITs has grown as interest in domestic dividend stocks has increased and interest rate cuts have begun in earnest.

The TIGER REITs Real Estate Infrastructure ETF is the first and largest REITs ETF in Korea. Since its listing in July 2019, it has maintained strong returns by selecting high-quality REITs and diversifying investments across real estate assets such as offices, logistics centers, and hotels. As of June 11, its net asset value reached KRW 652.9 billion. Major holdings include Macquarie Infrastructure (16.4%), SK REITs (12.9%), Lotte REITs (10.9%), and ESR Kendall Square REITs (10.6%).

REITs are considered stable investment vehicles as they pay dividends from rental income and capital gains generated by physical real estate, offering higher predictability compared to general dividend stocks. The TIGER REITs Real Estate Infrastructure ETF has maintained a distribution yield of about 7.78% over the past 12 months, providing stable monthly dividends. The REITs market is recovering investor sentiment by communicating dividend guidance and new inclusion plans to shareholders. In addition, the recent acceleration of market interest rate cuts is also a positive factor.

Mirae Asset Global Investments diversifies the TIGER REITs Real Estate Infrastructure ETF investment portfolio through regular changes. It newly includes high-quality infrastructure funds such as KB Balhae Infrastructure, with a market capitalization of about KRW 1 trillion, and indirect REITs such as IGIS Value Plus REITs. With the new inclusions, the portfolio will be further diversified into REITs and infrastructure, which is expected to enhance return stability. The expected dividend yield for the two newly included stocks is around 7%, which is also expected to expand the distribution resources.

Yoon Byungho, Head of Strategic ETF Management at Mirae Asset Global Investments, stated, "The TIGER REITs Real Estate Infrastructure ETF is the largest and lowest-cost REITs ETF in Korea. With high trading volume and the recent positive trend in the REITs market, it has posted a return of about 9% since the beginning of the year."

He added, "As the TIGER REITs Real Estate Infrastructure ETF is a monthly dividend product that pays out a fixed distribution every month, it can provide predictable cash flow when included in a monthly dividend portfolio using retirement pensions or tax-saving accounts."