Mirae launches two South Korea equity ETFs on KRX

Dec 3rd, 2018 | By | Category: Equities

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Mirae Asset Global Investments has launched two new ETFs in South Korea, on the Korea Exchange, under its local Tiger ETF brand.

Mirae launches two South Korea equity ETFs on KRX

The funds provide exposure to South Korean equities by tracking the KOSPI 200 Index and the MSCI Korea Index.

Both ETFs trade in Korean won and provide broad exposure to locally listed equities.

The Tiger 200 (310960 KS) ETF is linked to the KOSPI 200 Index, providing exposure large and mid-cap equity market performance in South Korea.

The index consists of 200 blue-chip stocks listed on Korea Exchange and accounts for approximately 93% of the country’s listed market capitalization. Constituents are weighted by market cap.

Reflecting the international strength of the electronics titan, Samsung is by far the largest constituent in the index, accounting for a massive 25.4% of the total index weight. The next largest constituent is semiconductor company SK Hynix at 4.9%.

Unsurprisingly, companies from the information technology sector comprise 36.1% of the index exposure, followed by equities in the financials (12.3%), industrials (10.7%) and consumer discretionary (9.3%) sectors.

The fund tracks the index through full physical replication and comes with an expense ratio of just 0.05%.

The second ETF is the Tiger MSCI Korea (310970 KS) ETF which tracks the MSCI Korea Index.

The index tracks a narrower range of companies with 115 constituents accounting for roughly 85% of Korea Exchange’s market cap.

Compared to the KOSPI 200, the MSCI index has a greater exposure to information technology at 44.2%, followed by financials (12.5%), and consumer discretionary (10.2%). Samsung makes up 26.3% of the index’s total exposure.

The fund’s expense ratio is 0.12%.

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