3-month annualized return at 3.50%
Net assets 3.3 trillion won; total expense ratio 0.04% per year
Mirae Asset Global Investments announced Thursday that its TIGER Money Market Active ETF ranked first among domestically listed money market ETFs in annualized returns over the past three months.
According to Korea Exchange, the ETF posted a three-month annualized return of 3.50 percent as of Wednesday. Its one-month and six-month annualized returns of 3.77 percent and 3.37 percent, respectively, also placed it among the top performers in its category.
The ETF's net assets stand at 3.28 trillion won ($2.37 billion). Its total expense ratio of 0.04 percent per year is among the lowest of comparable products.
Money market ETFs invest in short-term financial instruments such as ultra-short-term bonds, commercial paper and short-term electronic bonds, aiming for stable interest income. Their relatively low price volatility and the ability to trade on an exchange in real time make them a useful vehicle for parking idle funds or managing short-term cash before committing to riskier assets such as shares.
Retail investor inflows have also picked up as market volatility persists. According to ETF CHECK, retail investors net purchased 56.63 billion won worth of the ETF over the past three months as of Wednesday.
"The TIGER Money Market Active ETF is designed for investors who want to manage idle or surplus funds in a stable manner rather than take on high risk," said Kim Dong-myeong, head of the bond ETF management division at Mirae Asset Global Investments. "In a market where products share similar risk profiles, actual performance and cost competitiveness can be important criteria for choosing between them."
moon@heraldcorp.com
