Mirae Asset Lists Two New Active REITs TIGER ETFs

Mirae Asset Global Investments announced on July 29 that it will newly list two ETFs on the Korea Exchange: the "TIGER REITs Real Estate Infrastructure TOP10 Active ETF" and the "TIGER REITs Real Estate Infrastructure 10 Bond Mixed Active ETF." These are active REITs ETFs introduced by Mirae Asset Global Investments, which currently manages the largest domestic REITs ETF, the "TIGER REITs Real Estate Infrastructure ETF."

The TIGER REITs Real Estate Infrastructure TOP10 Active ETF is an ETF that focuses its investments on 10 leading domestic REITs and infrastructure stocks based on market capitalization. As of July 28, it invests primarily in Macquarie Infrastructure (with a 30% weighting), selecting the top 10 stocks according to the free-float market capitalization weighting method. Macquarie Infrastructure is the top domestic infrastructure stock, investing in metropolitan toll roads, city gas, data centers, ports, and more. By excluding overseas real estate investment REITs, which tend to have high price volatility due to exchange rates and interest rates, the ETF aims to reduce price volatility and pursue stable dividend yields.

As the only active REITs ETF in Korea, the TIGER REITs Real Estate Infrastructure TOP10 Active ETF can actively respond to events such as new listings or paid-in capital increases. Under current law, REITs are required to distribute at least 90% of distributable profits to shareholders. When new assets are incorporated or refinancing is needed, a paid-in capital increase becomes necessary. In this process, passive domestic listed REITs ETFs face a structural limitation: they must reduce the weighting of existing stocks by selling them according to index methodology, and the inclusion of newly listed REITs is repeated.

The TIGER REITs Real Estate Infrastructure TOP10 Active ETF decides on the inclusion of stocks and participation in paid-in capital increases after a comprehensive review of factors such as new assets and financial improvement.

The TIGER REITs Real Estate Infrastructure TOP10 Active ETF offers tax benefits. Up to KRW 50 million can be subject to separate taxation for up to three years, making it advantageous for high-dividend investors. Among domestic REITs ETFs, it offers the lowest total fee (annual 0.06%), maximizing investment efficiency.

The TIGER REITs Real Estate Infrastructure 10 Bond Mixed Active ETF invests 50% in a portfolio similar to the TIGER REITs Real Estate Infrastructure TOP10 Active ETF and 50% in domestic short-term bonds, aiming for relatively low volatility. This is the first bond-mixed REITs ETF in Korea. It is eligible for 100% investment through retirement pension accounts.

Both the TIGER REITs Real Estate Infrastructure TOP10 Active ETF and the TIGER REITs Real Estate Infrastructure 10 Bond Mixed Active ETF are monthly dividend-type ETFs, distributing dividends based on the 15th of each month. To ensure stable cash flow, dividends are paid at a consistent level each month.

Yoon Byungho, Head of Strategic ETF Management at Mirae Asset Global Investments, stated, "The two newly listed active REITs TIGER ETFs are an evolved form of REITs investment solutions, addressing the challenges and limitations of investing in individual REITs and existing passive REITs ETFs." He added, "Since REITs stock prices tend to weaken during interest rate hikes and rebound during rate cuts, investors seeking dividend income should pay attention to REITs now."

To commemorate the launch of the TIGER REITs Real Estate Infrastructure TOP10 Active ETF and the TIGER REITs Real Estate Infrastructure 10 Bond Mixed Active ETF, Mirae Asset Global Investments is holding a listing event for trading customers. Customers who meet the daily trading conditions for these ETFs at KB Securities and Korea Investment & Securities will receive cultural gift certificates.