Mirae Asset TIGER US Tech Top 10 INDXX ETF gathers $700 million after six months of launch

Indxx is pleased to announce that the Mirae Asset TIGER US Tech Top 10 INDXX ETF (hereinafter referred to as “USTTT”, Ticker: 381170 KS) has reached $700 million in assets since its 9 April 2021 launch.

The USTTT Index (Ticker: IUST10T) tracks the performance of the top 10 largest tech-oriented companies that are listed on the NASDAQ Stock Exchange.

Rahul Sen Sharma, Managing Partner at Indxx, said “We’re extremely proud of being associated with the TIGER US Tech Top 10 INDXX ETF. The pace of growth of this fund is truly impressive. The highly focused exposure to tech-oriented companies has gained immense traction from Korean investors. Congratulations to the entire team at Mirae Asset Global Investments. We wish them continued success.”

Nathan Namki Kim, Head of TIGER ETF Portfolio Management, commented: “The timely launch of the USTTT ETF in April coincided with the continuous growth in demand for U.S. tech stock exposure from local investors.”

According to SEIBRO, Korean investors hold $21.8 billion of the top 8 constituents of USTTT. (Source: Korea Securities Depository SEIBRO “Top 50 Overseas Stocks Held by Korean Investors, “as of September 30, 2021).

The USTTT ETF was launched to provide an efficient method for investors in Korea to gain exposure to the most popular U.S. tech stocks through an ETF wrapper.

USTTT is one of the fastest growing ETFs in the region on the back of:

• Customized index to provide a more attractive alternative to FANG+ indices by adopting a top-heavy structure while excluding Chinese stocks.
• Local listing of USTTT allows investors to purchase the ETF for their personal pension and retirement pension accounts. In 2021, the Korean ETF market witnessed record-high purchasing of ETFs from personal pension and retirement pension accounts, which increased from $10.5 billion at year-end 2020 to $24.6 billion today.
• Continuing buy activity of USTTT from personal and retirement pension accounts, which currently amount to $140 million (i.e. long-term investors).

Indxx US Tech Top 10 Index vs US Market Benchmark

• The Indxx US Tech Top 10 Index has consistently outperformed the US market benchmark since inception.
• Since its base date (March 18, 2016), the Index has outperformed the Indxx 500 Index by 1307 bps.
• The Index not only provides significant outperformance with respect to the country benchmark but also provides efficient risk management, with volatility differing only by 515 bps as compared to the Indxx 500 Index.
• During the stock market downturn, December 2019 – March 2020, the Indxx US Tech Top 10 Index fell by 7.49%, while the Indxx 500 Index fell by 42.67%. Thus, minimizing losses by more than 50% as compared to the US market benchmark. 

Indxx US Tech Top 10 Index vs other FANG+ Indices

• The Indxx US Tech Top 10 Index, by omitting the BAT stocks, provides pure exposure to NASDAQ listed US tech-oriented* companies. Only the common stock listings are considered in contrast to the other FANG+ indices, which track the performance of both US and non-US companies, as long as they are listed on US exchanges.
• The Indxx US Tech Top 10 Index provides exposure to companies across the broad spectrum of technology by targeting tech-oriented* companies. This allows for the inclusion of companies that drive the technology industry at the grassroots level like semiconductor companies. On the other hand, FANG+ indices are representative of the high growth technology and the internet/social media industry.
• The US Senate recently passed a bill, including a budget of $52 billion for the semiconductor industry, to bolster the nation’s research and technology capabilities. This increased investment is an effort to maintain a competitive edge against China.
• By providing targeted exposure to only US technology companies, the Indxx US Tech Top 10 Index is expected to benefit from the increased investment in US technology.

* Primarily deal in technology products/services or those that provide other consumer products/services that are heavily reliant on and are integrated with proprietary technology.

Performance Analysis

 **Data as of October 12, 2021