Mirae Asset Global Investments Co., Ltd. (Mirae Asset Global), a South Korean investment management firm, announced on March 7th, 2023, that the net assets of its TIGER US S&P500TR(H) ETF (448290) have exceeded 50 billion won.
The Korea Exchange reported that as of the close of trading on March 6th, the net assets of the TIGER US S&P500TR(H) ETF stood at 53.3 billion won. The ETF was launched in November 2022 and has experienced rapid growth, surpassing 50 billion won in net assets in less than three months.
The TIGER US S&P500TR(H) ETF is a currency-hedged ETF that invests in the S&P500 Index, which is a representative index of the United States. The S&P500 Index is composed of the top 500 companies by market capitalization listed in the United States and reflects the overall state of the U.S. economy.
The TIGER US S&P500TR(H) ETF is attracting attention as an investment that reduces exchange rate risk and volatility, as it is a currency hedge that is not affected by exchange rate fluctuations. Investors invest in Korean won, so there is no need for currency exchange.
The recent surge in the Korean won/dollar exchange rate has increased volatility, making the TIGER US S&P500TR(H) ETF even more appealing to investors looking to protect against a decline in the Korean won. The TIGER US S&P500TR(H) ETF's returns are linked only to price changes in the underlying asset, and it is not affected by exchange rate fluctuations.
Furthermore, the TIGER US S&P500TR(H) ETF is managed as an in-kind stock exchange-traded fund, making it an attractive investment option for pension investors.
It can be invested in both individual pension and retirement accounts, making it highly appealing to those investors who seek stable returns over the long-term. Most S&P500 exchange-traded hedged ETFs listed in Korea are managed as index futures and cannot be traded in DC/IRP accounts.
"Investors are showing a lot of interest in exchange-traded products as exchange rate volatility has increased recently, with the Korean won surging against the U.S. dollar," said Minjeong Ha, Manager of ETF Management at Mirae Asset Global. "The TIGER U.S. S&P500TR(H) ETF is suitable for investors who want to protect against a decline in the Korean won, as its returns are not affected by exchange rate fluctuations and are linked only to price changes in the underlying asset."
