On March 20, Mirae Asset Global Investments made an announcement that the net assets of the TIGER KOFR Interest Rate Active (Synthetic) ETF (TIGER KOFR ETF) have exceeded KRW 500 billion.
This ETF has been rapidly growing since its listing in November of the previous year, attracting attention as a stable investment destination in a volatile market.
The TIGER KOFR ETF tracks the Korea Risk-Free Rate (KOFR) which is announced daily by the Korea Securities Depository. KOFR is an interest rate index that is based on transaction data of repurchase agreements secured by overnight government bonds and MSBs, and since it is calculated based on actual transactions with short maturity, its reliability and stability are high.
TIGER KOFR is being recognized by investors as a parking ETF that replaces bank deposits due to its high stability, and it has been showing a trend of increasing net assets. The ETF is composed of overnight payments and immediately reflects changes in interest rates, making it easier to convert into cash through selling, unlike bank deposits.
Compared to other major bonds and short-term financial instrument ETFs listed in Korea, the total return of TIGER KOFR is low at 0.03%.
Jeong Seung-ho, manager of Mirae Asset Global Investments ETF management division, said, “TIGER KOFR is an ETF suitable for managing standby funds in times of great uncertainty in the stock market.”
