South Korea’s Mirae Asset Global Investments Co. has launched the world’s first passive target date exchange-traded funds (ETF) on Tuesday.
According to the company, the TIGER TDF2045 ETF has a passive management strategy and tracks stock indices to enhance return predictability.
Developed in collaboration with S&P 500, the asset product is designed to maximize the transparency benefits of ETFs.
The asset allocation strategy consists of 79 percent in risky assets, such as stocks, with the rest in safe assets, such as bonds.
The proportion of risky assets will gradually decrease by 1 percent annually until 2040 and 5 percent from 2041 to 2045. It will be maintained at 39 percent thereafter.
