Tiger ETF, a division of Mirae Asset Global Investments, has launched a new multi-asset ETF in South Korea, on the Korea Exchange.
The new Tiger ETF provides exposure to a mix of Korean real estate and infrastructure assets and government bonds.
The Tiger KIS Real Estate Infra Bond Total Return ETF (341850 KS) provides exposure to a mix of alternative investments, including real estate and infrastructure assets, and Korean government bonds.
It is linked to the KIS Real Estate Infrastructure Bond TR Index which consists of a 70% allocation to an “alternative investment sub-index” and a 30% allocation to a “bond sub-index”, rebalanced quarterly.
The alternative investment sub-index is composed of the 30 highest dividend-yielding securities from a universe of KRX-listed real estate investment trusts (REITs), real estate collective investment organizations, and infrastructure-based special asset collective investment organizations, with securities weighted by market capitalization subject to individual caps of 18%.
The bond index consists of an equal allocation to futures contracts for three-year and ten-year Korean government bonds.
The ETF may suit investors looking for long-term, steady cash flows with the diversification benefits of spreading risk across multiple asset classes. Real estate and infrastructure assets have also historically offered partial protection from inflation, while infrastructure tends to be less sensitive to the economic cycle due to the essential nature of its services.
The ETF has been listed with a management fee of 0.22%.