As investors seeking to manage short-term funds while responding to volatility in the dollar exchange rate have flocked to the market, the combined net assets of two dollar short-term bond exchange-traded funds (ETFs) managed by Mirae Asset Global Investments have surpassed 1 trillion won.

Mirae Asset Global Investments' Two TIGER Dollar Short-Term Asset ETFs Top 1 Trillion Won in Combined Net Assets View original image

On October 8, Mirae Asset Global Investments announced that the combined net assets of two dollar short-term asset ETFs, TIGER US Dollar Short-Term Bond Active and TIGER US Ultra-Short-Term (3 Months or Less) Treasury, had topped 1 trillion won.


According to the Korea Exchange, as of October 7, the two products had net assets of 732 billion won and 389.2 billion won, respectively, for combined net assets of 1.1212 trillion won.


With the dollar-won exchange rate recently declining, the two products are suited to investors seeking to secure dollar-denominated assets and manage them over the short term. Both can be traded in won during market hours. They can also be used as a so-called "parking" vehicle for temporarily managing short-term dollar funds, and have distinct features depending on their investment targets and strategies.


TIGER US Dollar Short-Term Bond Active invests in U.S. Treasury securities and high-quality corporate bonds. By investing not only in Treasuries but also in high-quality credit, it seeks relatively high interest income. It also broadens the scope of dollar bond investments by including both U.S. Treasuries and corporate bonds.


TIGER US Ultra-Short-Term (3 Months or Less) Treasury invests in U.S. Treasury securities with remaining maturities of three months or less. It is managed in a manner similar to SGOV, a leading U.S. ultra-short-term Treasury ETF, and focuses on ultra-short-term Treasury securities issued by the U.S. government, reducing exposure to the credit risk of individual companies.



"The dollar is not simply an asset for investing in an appreciation of the exchange rate; it is one of the key assets to consider in a portfolio," said Kim Dong-myeong, head of the Bond ETF Management Division at Mirae Asset Global Investments. "We will continue to strengthen TIGER's differentiated product lineup so investors can hold dollars efficiently according to their investment objectives."


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