According to the Korea Exchange, as of June 24, the net assets of the TIGER Money Market Active ETF reached 1.2328 trillion won. The ETF has been attracting attention as a tool to prepare for both heightened stock market volatility and a potential interest rate cut. Since its listing on April 22, it has drawn significant interest from individual investors.
The TIGER Money Market Active ETF is a short-term fund ETF that invests in ultra-short-term bonds with maturities of less than three months, as well as commercial papers (CP). Based on an active strategy, it selects high-yield assets to pursue excess returns over its benchmark. With an average duration of approximately 0.15 years, the ETF minimizes interest rate fluctuation risk.
As of June 24, the expected yield to maturity (YTM) for the TIGER Money Market Active ETF is 2.75%. This is a high level among domestically listed money market ETFs and offers a higher expected return compared to other parking-type products. Since the beginning of the year, short-term interest rates have declined, with current rates for 91-day certificates of deposit (CD) and KOFR (Korea Overnight Financing Rate) at around 2.5-2.6%, and six-month time deposit rates at about 2.3%. The TIGER Money Market Active ETF charges an annual total expense ratio of 0.040%, which can help maximize investment returns.
Kim Dongmyung, Head of Fixed Income ETF Management at Mirae Asset Global Investments, stated, "With the recent trend of interest rate cuts, expected returns on both savings deposits and existing interest rate-linked ETFs are generally declining. In a changing interest rate environment, if you are considering short-term fund management, you can expect both stability and returns by utilizing the 'TIGER Money Market Active ETF.'"
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