Mirae Asset Management Gains from Sino-Japanese Tensions with ETFs
Recent geopolitical tensions between China and Japan have inadvertently benefited South Korea's tourism and consumer industries, leading to heightened interest in Mirae Asset Management's 'TIGER Cosmetic' and 'TIGER Travel & Leisure' exchange-traded funds (ETFs). The 'TIGER Cosmetic ETF,' focused heavily on Korean cosmetics firms, has reached 421.6 billion won in assets, while the 'TIGER Travel & Leisure ETF,' investing in diverse leisure companies like Lotte Tour Development and Paradise, holds 109.2 billion won in assets.
China's advisory against its citizens traveling to Japan has driven an increase in Chinese tourists visiting South Korea, consequently boosting demand for Korean tourism services and K-beauty exports. This trend has positively affected the overall South Korean market, translating into rising values for the associated ETFs.
Mirae Asset Management anticipates the continued growth of South Korea's tourism and consumer sectors amid these Sino-Japanese tensions. The combined assets of the two ETFs have already surpassed the 500 billion won mark, underscoring South Korea's adept ability to leverage regional external conflicts into new opportunities. This case vividly illustrates how quickly the Korean market can respond to and capitalize on international developments.
Celebrating 3 Years of ACE ETF Rebranding: Stellar Growth and Long-Term Investment Strategy
Korea Investment Management Co.'s ACE ETF has marked its third anniversary since rebranding with remarkable growth. The ETF's net asset value surged from 3 trillion won to 22 trillion won, a seven-fold increase, with flagship product 'ACE Global Semiconductor TOP4 Plus' achieving a 334.14% return, ranking it first in yield among domestically listed overseas stock ETFs. President Jae-kyu Bae emphasized the importance of long-term investment in tech stocks amid the era of AI and big tech, advocating a shift from the traditional manufacturing-focused investment approach to recognizing the value of tech companies.
Following rebranding, Korea Investment Management Co. has expanded its lineup with 56 new listings, solidifying its position as an industry leader through a diverse range of innovative products. Particularly noteworthy is the ACE ETF's focus on tech stocks, with a 70% allocation, underscoring an investment philosophy centered on 'long-term investment in future growth.' The firm's leadership in securing the highest individual investor proportion in the industry, at 42%, further strengthens its trust with investors. This seminar's discussion on strategy and performance sends a powerful message to many investors.
Surge in AI-themed Stock and ETF Investment
The recent rise of the S&P 500 index, driven by artificial intelligence (AI), has attracted significant capital flows into stocks and exchange-traded funds (ETFs) both domestically and internationally. Notably, tech stocks like Nvidia and ETFs such as QQQM and VOO are drawing attention. AI-themed ETFs are considered as effective diversification tools and investing in U.S.-listed ETFs through tax-efficient accounts is recommended due to capital gains tax implications.
Bae Jae-gyu, CEO of Korea Investment Trust Management, emphasizes the importance of long-term investment strategies based on the rise of AI technology, particularly endorsing investments in the Nasdaq 100. The ACE ETF has expanded its net assets by over 20 trillion won following its rebranding over the past three years, and has achieved substantial market share through strategic investments in the global semiconductor market.
Market analysis reveals that while the S&P 500 and KOSPI indices have considerably risen, individual stock investments outside leading firms remain challenging. Consequently, investors can effectively track market returns using ETFs, with AI-themed ETFs receiving heightened interest. In the U.S. market, funds like 'VanEck Semiconductor' and 'iShares Future AI & Tech' are gaining traction, while 'KODEX U.S. Semiconductor' and 'TIGER Global AI Active' are in focus within the domestic market.
Kiwoom Securities Launches Tax-Saving ETF Trading Event
Kiwoom Securities is initiating an event titled 'More Benefits with ETF Trading in Tax-Saving Accounts,' offering tax benefits to its clients. By opening a new brokerage ISA or pension-saving account and purchasing domestic ETFs at least five times, investors can receive a 1% cashback on their investment, up to a maximum of 100,000 KRW. Brokerage ISAs allow for the management of various investment products under a single account, providing a valuable means to reduce tax burdens, while pension savings accounts offer significant tax reduction through income deductions.
Specifically, the brokerage ISA provides a tax-exempt benefit on investment profits, enabling investments in a wide array of financial products without tax concerns. Pension savings accounts provide up to a 990,000 KRW tax deduction, and transferring matured ISA funds to a pension account can result in an additional tax deduction of up to 3 million KRW. These tax-saving benefits offer an attractive option for investors, particularly during the year-end tax settlement season, serving as an effective tool for asset management.
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