TIGER REITs Real Estate Infrastructure ETF Surpasses 1 Trillion Won in Net Assets

Mirae Asset Global Investments announced on November 21 that the net asset value (NAV) of the "TIGER REITs Real Estate Infrastructure ETF" has surpassed 1 trillion won.

According to the Korea Exchange, as of the closing price on November 20, the NAV of the "TIGER REITs Real Estate Infrastructure ETF" stood at 1.0313 trillion won, making it the largest among REIT ETFs listed in Korea.

The TIGER REITs Real Estate Infrastructure ETF, which was listed in July 2019, is the first-ever "original REIT ETF" in Korea and is also the largest "representative domestic REIT ETF." Its major investment holdings include Macquarie Infrastructure (15.7%), SK REITs (12.3%), KB Balhae Infrastructure (10.3%), Lotte REITs (9.6%), and ESR Kendall Square REITs (9.2%).

Currently, the TIGER REITs Real Estate Infrastructure ETF is recording the highest rate of return among REIT ETFs listed in Korea. As of November 20, its year-to-date return stands at 17.2%. With the recent rise in domestic dividend stocks increasing the burden on stock prices, interest in relatively undervalued REIT assets has grown. Additionally, expectations of interest rate cuts have further enhanced the investment appeal of REITs.

According to the Korea Financial Investment Association, as of the end of October, the actual expense ratio of the "TIGER REITs Real Estate Infrastructure ETF" was 0.1587%, the lowest among REIT ETFs listed in Korea. The actual expense ratio refers to the total cost borne by investors, including total fees, other costs incurred during fund management, and transaction and brokerage fees. Since REIT ETFs are indirect investment products, the actual expense ratio accumulates over the long term and can impact returns, making it an important factor to consider.

In addition, the ETF continues to gain popularity by providing stable monthly distributions based on dividends from its REIT and infrastructure holdings. Taking into account the expected dividends and remaining distribution resources for each REIT, the ETF is currently paying a uniform monthly dividend of 33 won per share, with a distribution rate of approximately 7.6% over the past 12 months. Starting in March next year, the fund plans to further build investor trust by updating its distribution guidance and transparently disclosing distribution resources.

Yoon Byungho, Head of Strategic ETF Management at Mirae Asset Global Investments, said, "The TIGER REITs Real Estate Infrastructure ETF is the leading domestic REIT ETF, recording the best returns amid strong interest from dividend investors in REIT investments," adding, "We will strive to fulfill our role as the representative ETF of the domestic REIT market by managing distribution resources transparently and enhancing portfolio performance."