Mirae Asset's 'TIGER U.S. 30-Year Treasury Strip Active ETF' Surpasses KRW 5 Trillion in Net Assets
Mirae Asset's 'TIGER U.S. 30-Year Treasury Strip Active ETF' Surpasses KRW 5 Trillion in Net Assets
Mirae Asset's 'TIGER U.S. 30-Year Treasury Strip Active (Synthetic H) Exchange-Traded Fund (ETF)' has surpassed KRW 5.314 trillion in net assets. This ETF aims to maximize expected returns from interest rate cuts by incorporating strip bonds, offering higher returns due to its higher duration when interest rates decline. Over the past three months, the ETF's return was 8.23%, approximately 1.5 times the average return of U.S. 30-year Treasury Investment ETFs listed in Korea (4.94%). U.S. bond ETFs have shown strength in response to the Federal Reserve's signal for a September rate cut. iShares Core US Aggregate Bond ETF (AGG) rose 0.54%, iShares U.S. Treasury Bond ETF (GOVT) gained 0.57%, and Vanguard Long-Term Treasury ETF (VGLT) increased by 1.04%. Fed Chair Jerome Powell's remarks heightened expectations of a September rate cut, driving significant gains in long-term bond ETFs. A record $150 billion flowed into U.S.-listed bond ETFs from January to July this year, according to Morningstar. This unprecedented influx is attributed to investors' growing interest in long-term bond ETFs stemming from rate cut expectations.
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