Optimization of Short-term Fund Management 'TIGER Money Market Active ETF' Surpasses 500 Billion Won in Net Assets

[Financial News] Mirae Asset Management announced on the 29th that the net assets of the 'TIGER Money Market Active ETF' have surpassed 500 billion won.
According to the Korea Exchange, as of the closing price on the 28th, the net assets of the TIGER Money Market Active ETF were 515.7 billion won. After surpassing 300 billion won in net assets on the 15th, it exceeded 500 billion won in about two weeks.
This rapid growth is thanks to the continuous buying trend of individual investors. Since the listing date (April 22), the cumulative net purchase volume of individuals for the TIGER Money Market Active ETF is 20.6 billion won, which is the fastest trend among money market ETFs listed domestically.
This year, as market volatility prolongs and the trend of interest rate cuts adds up, the demand for investing short-term funds flexibly has significantly increased. The TIGER Money Market Active ETF meets this investment demand and is gaining attention as a means to replace deposits and other parking-type products.
This ETF is a short-term fund type ETF that invests in ultra-short-term bonds and commercial papers (CP). It is similar to existing MMFs in terms of composition or duration, but it has relatively fewer operational restrictions and applies market valuation, allowing for excess returns compared to general MMFs. In terms of yield, it is expected to perform better than other interest rate products. As of the 28th, the CD 91-day interest rate, a representative indicator of interest rate products, fell to 2.63%, while the maturity expected yield (YTM) of the TIGER Money Market Active ETF was recorded at 2.91%.
Mirae Asset Management's Kim Dong-myung, head of the Bond ETF Management Division, said, “As we enter a period of interest rate decline, the expected yield level of interest rate ETFs, which received much attention until last year, has fallen, but the TIGER Money Market Active ETF is expected to provide relatively high returns as it can secure stability and receive capital gains when interest rates are cut,” adding, “It is a time to actively consider investing in money market ETFs in the changing interest rate environment, with the YTM of CD rate ETFs and money market ETFs differing by more than 0.25%.”
dschoi@fnnews.com Choi Doo-sun Reporter