Mirae Asset Global Investments has launched a bond-mixed exchange-traded fund that invests in Samsung Electronics (005930.KS) and SK hynix (000660.KS) while also holding short-term U.S. Treasurys.
Mirae Asset Global Investments said on the 25th that it had listed the TIGER Samsung Electronics SK hynix U.S. Treasury Mixed 50 ETF on the Korea Exchange. The fund allocates 25% each to Samsung Electronics and SK hynix and invests the remaining 50% in short-term U.S. Treasurys with a remaining maturity of one year or less. It is designed to pursue the growth potential of Korea's leading chipmakers — driven by expanding artificial intelligence (AI) infrastructure investment and rising demand for high-performance memory — while securing dollar assets and interest income from U.S. Treasurys.
Unlike existing Samsung Electronics and SK hynix bond-mixed ETFs that use won-denominated bonds, this fund is distinguished by constructing its bond portion from short-term U.S. Treasurys. With half of total assets in dollar assets, the company said the fund can be expected to partly cushion the volatility of domestic stocks during periods of won weakness and dollar strength.
The fund is eligible for up to 100% allocation in retirement accounts. In particular, an investor who has filled the 70% ceiling on risk-asset investment with equity ETFs and other products can invest the remaining 30% in this fund, raising the effective stock investment weighting of the entire retirement account to as much as 85%.
Kim Dong-myung, head of the bond ETF management division at Mirae Asset Global Investments, said, "Taking into account the won-dollar exchange rate of 1,380 won and the short-term U.S. Treasury yield of 3.82% as of the previous day, even if the exchange rate falls to about 1,329 won, the interest income can offset the loss from the exchange-rate decline." Kim added that the fund "will be an effective asset-allocation tool for long-term pension investors who want to secure both the growth potential of Korea's leading companies and dollar assets."
