Mirae Asset Global Investments' TIGER US Nasdaq 100 Bond Mix 50 Surpasses KRW 500 Billion in Net Assets
TIGER US Nasdaq 100 Bond Mix 50, a flagship asset-allocation exchange-traded fund (ETF) from Mirae Asset Global Investments, has surpassed KRW 500 billion in net assets, buoyed by demand for diversified investment amid increased stock market volatility.
On November 12, Mirae Asset Global Investments said the ETF's net assets reached KRW 512.2 billion as of the previous day's close, exceeding KRW 500 billion.
The ETF invests in the Nasdaq 100, a leading U.S. technology stock index, and South Korean government bonds, allocating 50% to each. It is designed to capture the long-term growth potential of a leading global index while managing portfolio volatility by including high-quality Korean bonds. Bond-mixed ETFs have become a stable option for retirement fund management, in line with demand for long-term, regular investments through retirement pension and personal pension accounts.
As stock market fluctuations have widened recently, funds are flowing in rapidly from investors looking beyond simply increasing their equity exposure and focusing on bonds' defensive qualities and the benefits of asset allocation. In particular, as bond prices have rebounded since September, the "negative correlation" between stock and bond returns has become more pronounced.
An analysis of the return correlation between government bonds and the Nasdaq Index, the assets held by the TIGER US Nasdaq 100 Bond Mix 50, over the past six months found it to be around -0.34. When the Nasdaq 100 fell 13.4%, bonds rose 2.5%, demonstrating the ETF's effectiveness in managing portfolio volatility.
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Dongmyeong Kim, head of the Bond ETF Management Division at Mirae Asset Global Investments, said, "The asset-allocation benefits of bond-mixed products stand out all the more when stock market volatility is high." He added, "The key to successful long-term investing is to pursue the growth potential of the Nasdaq 100 while managing portfolio volatility through long-term bonds."
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