Mirae Asset Lists New "TIGER Samsung Electronics SK hynix US Treasury Mixed 50 ETF"

An exchange-traded fund (ETF) that combines investments in leading domestic semiconductor companies with short-term U.S. Treasuries has been launched, aiming to secure dollar-denominated assets while also bypassing the risk asset limit for retirement pensions.

On August 25, Mirae Asset Global Investments announced the listing of the "TIGER Samsung Electronics SK hynix US Treasury Mixed 50" ETF on the Korea Exchange.

The TIGER Samsung Electronics SK hynix US Treasury Mixed 50 ETF allocates 25% of its assets each to Samsung Electronics and SK hynix—which lead the global memory semiconductor market—while the remaining 50% is invested in short-term U.S. Treasuries with maturities of 0 to 1 year. Unlike existing similar products that invest in won-denominated bonds, this ETF sets itself apart by allocating half of its total assets to dollar-denominated assets, helping to mitigate equity volatility in the Korean market caused by currency appreciation (stronger dollar) during global risk-off periods.

Another key feature of the product is the combination of interest income from short-term U.S. Treasuries and low interest rate sensitivity, especially in the context of a won-dollar exchange rate that has fallen from its peak. As of August 24, the won-dollar rate stood at about KRW 1,380, a decrease of approximately 12% from its high of KRW 1,561, which may reduce the entry burden for investors seeking long-term allocation to dollar assets. Moreover, with the U.S. policy rate still higher than Korea’s, the fund uses interest from U.S. Treasuries as a primary source of monthly distributions, and its short maximum maturity of up to one year lowers sensitivity to interest rate fluctuations compared to long-term bonds.

Additionally, as a bond-mixed ETF, the product allows for investment of up to 100% from retirement pension accounts. Investors can allocate the full 70% limit to equity ETFs and the remaining 30% to this ETF; considering the allocations to Samsung Electronics and SK hynix within this ETF, the effective equity exposure of the entire pension portfolio can be increased to as much as 85%.

Kim Dongmyung, Head of Bond ETF Management at Mirae Asset Global Investments, stated, “The TIGER Samsung Electronics SK hynix US Treasury Mixed 50 ETF pursues global asset allocation, holding both won- and dollar-denominated assets, with long-term retirement planning in mind.” He added, “Given the August 24 won-dollar exchange rate of KRW 1,380 and a 3.82% yield on U.S. short-term Treasuries, interest income can offset losses from currency depreciation even if the rate falls to around KRW 1,329.” Kim went on to say, “Since up to 100% pension allocation is possible, this fund will serve as an effective asset allocation tool for long-term pension investors seeking both the growth potential of Korea’s leading companies and dollar-based assets.”

This content was produced with the assistance of AI translation services.