Mirae Asset International Investments,
Mirae Asset International Investments, one of many main asset administration companies in Korea, is partnering with Nasdaq to extend publicity to the speedy development of the semiconductor business. With the launch of the MIRAE ASSET TIGER US PHLX Semiconductor Sector Nasdaq ETF, Korean buyers may have the chance to faucet into the potential of this sector by means of an exchange-traded fund (ETF) monitoring the Nasdaq PHLX Semiconductor Index (SOX).
As an asset supervisor, Mirae Asset leverages its globally built-in platform and funding intelligence to supply purchasers with progressive options throughout all main asset courses and assist them navigate the ever-changing funding panorama. In response to native investor calls for, Mirae Asset chosen SOX for its ETF productization.
“We’re extraordinarily happy to launch the U.S. Philadelphia Semiconductor Sector Nasdaq ETF (SOX ETF) in Korea,” mentioned Chun Yong Rhie, Chief Funding Officer at Mirae Asset International Investments. “There may be growing native demand for investing in constituents of the SOX index, the place Korean buyers at present maintain over $1.7 billion in semiconductor-related shares similar to NVIDIA, TSMC and Qualcomm.i The highest-heavy construction of the index, mixed with surging curiosity within the semiconductor sector, will make it a compelling funding for buyers.”
“By means of the launch of the SOX ETF, we attempt to supply simpler entry for Korean buyers to realize publicity to abroad equities. As well as, the native itemizing of the SOX ETF will permit buyers to buy the ETF for his or her non-public pension and retirement pension accounts, a section that grew 342% in 2020,” Rhie continued.
Mirae Asset’s long-standing relationship with Nasdaq dates again to 2010, when the agency launched the primary Nasdaq-100 ETF in Korea. “The TIGER Nasdaq-100 ETF, Asia’s largest Nasdaq ETF, not too long ago crossed the KRW600 billion ($535 million) AUM milestone in January 2021, Rhie famous. “We stay up for partnering with Nasdaq to additional develop ETFs for simpler and extra environment friendly entry to abroad publicity for our buyers.”
Mirae Asset’s Business Recognition
| 2020 | 2019 |
|---|---|
| Newcomer ETF of the Yr – International X Cloud Laptop ETF | Mutual Fund Business Awards | Thematic ETF of the Yr – International X Cloud Computing ETF | ETF.com |
| New ETF of the Yr – AUSF – Adaptive U.S. Issue ETF (International X) | Fund Intelligence |
With the addition of the SOX ETF to Mirae Asset’s product line-up, the agency now presents over 300 ETFs throughout 11 international markets. ETFs make up nearly a 3rd of the agency’s $190 billion of belongings underneath administration, reflecting Mirae Asset’s dedication to this funding car in addition to its buyers’ well-earned belief in its ETFs choices.
The ETF market in South Korea has develop into a extremely aggressive panorama, with native investor urge for food displaying little indicators of slowing down. Between 2010 and 2020, the ETF business in Korea grew at a CAGR of 24%. As of year-end 2020, the Korean ETF business stands at KRW52 trillion ($46.four billion) by way of AuM, with 468 ETFs and 15 ETF issuers.ii
Amid the rise of ETFs within the native market in addition to the prevailing know-how funding theme, Mirae Asset acknowledged the necessity for an answer that addresses buyers’ give attention to semiconductors. Given the efficiency of the underlying SOX index, Mirae Asset noticed a possibility to accomplice with Nasdaq on such an funding car.
Since its inception in 1993, SOX has develop into probably the most extensively tracked subsector indexes. As of February 26, 2021, the overall return for NDX since December 31, 2009, was 685%, whereas for SOX it was 935%. As one of many largest constituents lately, NVIDIA Company (NVDA) has contributed 114% of the 935% whole return of SOX – essentially the most of any firm within the index.
SOX continues to efficiently replicate a transformative interval for the semiconductor business, as its constituents develop into more and more essential to immediately’s thematic tech panorama, together with cloud, cyber, biotech, automotive and synthetic intelligence purposes.
For extra data on Nasdaq’s Asia-Pacific index protection, click on right here.
i Supply: Korea Securities Depository SEIBRO “High 50 Abroad Shares Held by Korean Traders”, as of 26 February 2021
ii Supply: KRX ETF ETN Month-to-month – January 2021 Version