Mirae Asset Launches 'TIGER US S&P500 US Treasury Bond Hybrid 50' ETF

A new bond-mixed exchange-traded fund (ETF) has been launched that combines the long-term growth potential of the U.S. flagship index S&P 500 with the stability of U.S. short-term Treasury bonds, enabling retirement pension accounts to maximize their allocation to risk assets.

On September 8, Mirae Asset Global Investments announced the new listing of the "TIGER US S&P500 US Treasury Bond Hybrid 50" ETF on the Korea Exchange, which invests simultaneously in the S&P 500 and U.S. short-term Treasury bonds.

This product is structured to allocate 50% of its assets each to the S&P 500 index and to U.S. Treasury bonds with maturities between 0 and 1 year, making it a bond-mixed type ETF. Using a 'Constant Mix' strategy, which maintains a 50:50 target allocation daily, the fund is designed to keep the two assets in balance at all times.

Recently, the correlation between U.S. equities and medium- to long-term Treasury bonds has increased, making it difficult to achieve adequate diversification with the traditional stock-bond combination alone. As a result, asset allocation strategies that combine the long-term growth of stocks with the relative price stability of short-term Treasury bonds and dollar assets have been gaining attention.

This ETF leverages the experience and expertise accumulated from managing the S&P 500 ETF, one of the flagship U.S. investment products operated by the TIGER ETF, to offer a product that integrates the long-term growth potential of the S&P 500 with the stability and interest income of U.S. Treasury bonds with maturities between 0 and 1 year. By exposing the entire portfolio to dollar-denominated assets, investors can also expect currency diversification. In addition, the fund seeks to distribute dividends monthly, using interest income from U.S. short-term Treasury bonds as a primary source.

The ETF allows for 100% investment in retirement pension accounts, making it highly applicable for the asset allocation strategies of pension investors. For example, if an investor allocates 70% of their risk assets to the S&P 500 ETF and the remaining 30% to this product, the overall portfolio will consist of 85% exposure to the S&P 500 and 15% to U.S. short-term Treasury bonds.

Kim Dongmyung, Head of Bond ETF Management Division at Mirae Asset Global Investments, said, "In long-term investment, it's not just about the short-term returns on specific assets, but about how you combine growth and stability. The TIGER US S&P500 US Treasury Bond Hybrid 50 ETF is designed to help pension investors easily implement asset allocation strategies in a single product by adding the stability and interest income of U.S. short-term Treasury bonds to the long-term growth potential of the S&P 500."

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