Mirae Asset's 'TIGER CD1-Year Rate Active ETF' Sees Increased Liquidity and Investment Appeal
Mirae Asset Management's 'TIGER CD1-Year Rate Active (Synthetic) ETF' has reached 1.5309 trillion won in net assets, reflecting the recent rise in 1-year Certificate of Deposit (CD) rates. This ETF, which is the first in Korea to track 1-year CD rates, allows investors to gain returns even with short-term investments and has garnered significant attention. Notably, it saw an influx of more than 5 trillion won within this year alone, indicating strong interest amid rising market rates.
The key attraction of this ETF lies in the current 2.93% CD rate, providing investors with a relatively safe means to deploy their funds in the rising rate environment. Its low total expense ratio (TER) of 0.0098% significantly reduces investment costs, and the annual dividend payments mitigate the impact of capital loss and tax burdens, enhancing its appeal.
The recent spike in the 1-year CD rate is seen as a normalization of an unusual interest rate inversion and has established the ETF as one of the most liquid options in the market. It provides a viable option for managing short-term idle funds and is considered a more efficient investment choice compared to traditional bond ETFs in terms of liquidity and returns. Mirae Asset aims to offer investors a stable pursuit of interest returns and agile market responsiveness through this ETF.
Leverage ETFs and Semiconductor Stock Market Dynamics
The recent surge of the Korean stock market, surpassing the 4,000-point threshold, is largely attributed to the bullish semiconductor sector. Notably, the sharp rise in shares of Samsung Electronics and SK Hynix has driven more than $400 million in global investment into the 'Samsung Electronics 2x Leverage ETF' and 'SK Hynix 2x Leverage ETF' listed on the Hong Kong Stock Exchange. Of this, a significant portion, amounting to 40 billion KRW, represents investments by Korean investors, highlighting keen interest in these ETFs.
Domestically, while single stock leverage ETFs are restricted by regulation, investors are navigating these limitations by purchasing through foreign markets. As U.S. capital shifts towards Asian tech, Samsung Electronics and SK Hynix are emerging as key players in the stock market, which is positively impacting their stock prices.
Additionally, this week saw notable movements within the domestic ETF market, with Samsung Asset Management's 'KODEX AI Semiconductor Core Equipment' exhibiting an impressive weekly gain of 13.10%. This non-leverage product ranks highest in performance, attracting significant investor interest. Furthermore, leverage ETFs related to semiconductors, such as Mirae Asset Management's 'TIGER US Philadelphia Semiconductor Leverage (Synthetic)' and Samsung Asset Management's 'KODEX Semiconductor Leverage', continue to record exceptional returns, garnering attention.
This week further witnessed the introduction of six new ETFs by major local asset managers, including KB Asset Management and Samsung Asset Management. These new listings offer a broader array of options for investors, and their future performance is anticipated with interest.
Samsung Asset Management's KODEX Financial Bond ETF Surpasses 1 Trillion Won in Net Assets
Samsung Asset Management’s ‘KODEX 26-12 Financial Bond (AA- or higher) Active’ ETF has garnered attention by surpassing 1 trillion won in net assets just 18 trading days after its listing. This ETF is characterized by its maturity-matched bonds expiring in December 2026, focusing on high-quality financial bonds with an AA- or higher credit rating, which highlights its stability. It offers an expected annual return of 2.94%, and its similarity to fixed deposits has made it popular among investors.
The ETF is available to both individual and institutional investors, allowing for additional financial benefits such as tax deductions through pension accounts. Amid expectations of interest rate cuts, the positive evaluations of this ETF's profitability and stability continue. It is noteworthy for diversifying investments across various financial bonds, commercial bank bonds, and card bonds with high credit ratings, minimizing investment risk.
Launch of BNK Kakao Group Focus ETF in December
The Korea Exchange has announced the listing of the 'BNK Kakao Group Focus ETF' by BNK Asset Management on December 2. This ETF is designed to invest 90% of its assets in companies belonging to the Kakao Group, while the remaining 10% will be allocated to the top market capitalization stocks related to the industry. By concentrating the ETF's composition on core stocks of Kakao affiliates and including top industry stocks, the focus is on diversifying investor portfolios and managing risk effectively.
The ETF is priced at 10,000 won per share, offering investors the opportunity to participate in the performance of the Kakao Group at a relatively low entry cost. This approach aims to encourage concentrated investments in a single corporation while still providing a level of protection against market volatility. Through this initiative, BNK Asset Management is seeking to attract investor interest and expand its influence in the ETF market.
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