Product splits investment evenly between NASDAQ 100 and domestic government bonds

[Provided by Mirae Asset Global Investments]
[Provided by Mirae Asset Global Investments]

Mirae Asset Global Investments announced Thursday that the net assets of its TIGER US NASDAQ 100 Bond Mixed 50 ETF have surpassed 500 billion won ($372 million).

According to Korea Exchange, the ETF's net assets stood at 512.2 billion won as of Wednesday. The inflow reflects growing investor appetite for mixed-asset ETFs that spread exposure across shares and bonds, as volatility in global equity markets has increased in recent months.

The TIGER US NASDAQ 100 Bond Mixed 50 allocates 50 percent of its portfolio to the US NASDAQ 100 index and the remaining 50 percent to domestic government bonds. The structure allows bond returns to partially offset losses when equity markets fall, delivering a diversification effect.

In practice, that balance has shown results: over the past six months, the NASDAQ 100 index fell 13.4 percent while domestic government bonds gained 2.5 percent, demonstrating the diversification benefit between the two asset classes.

This asset-allocation effect has also been driving growing interest in bond-mixed ETFs among pension investors. Because bond-mixed ETFs are classified as non-risky assets in retirement pension accounts, investors can allocate up to 100 percent of their accumulated funds to them. For defined-contribution (DC) pension plans and individual retirement pension (IRP) accounts, where the share of risky assets is capped at 70 percent, the remaining 30 percent can be directed into bond-mixed ETFs to increase equity exposure.

"The asset-allocation benefit of bond-mixed products stands out most clearly during periods of high equity market volatility," said Kim Dong-myeong, head of the bond ETF management division at Mirae Asset Global Investments. "Managing portfolio volatility through long-term bonds while pursuing the growth potential of the NASDAQ 100 is the key to successful long-term investing."


moon@heraldcorp.com