TIGER US Nasdaq 100 (133690) 🔎 In-depth

The benchmark index is the Nasdaq 100. It is built by gathering the 100 largest non-financial companies by market capitalization listed on the US Nasdaq exchange, excluding financial firms such as banks and insurers. Because each company is weighted in proportion to its market capitalization (company size), larger companies take a bigger share of the index. This ETF actually buys those 100 stocks to follow the index's movement as closely as possible.

As a product that tracks the US Nasdaq 100 index at 1x, it rises when the index rises and falls when it falls. Added to this is an FX-exposed structure with no FX hedge. In other words, even if US stock prices are unchanged, a rise in the KRW/USD rate (a stronger dollar) increases the won-converted value and helps returns, while a falling rate (a weaker dollar) can erode performance by that much. Ultimately, this ETF's day-to-day moves reflect the combined effect of 'the trend in the US tech index x the change in the KRW/USD rate.'

Because it tracks an index concentrated in technology and growth companies, its ups and downs (volatility) tend to be larger than for products that hold the whole market evenly. It reacts sensitively to trends in rates, the economy, and the tech industry cycle, and it is highly dependent on a small number of top large-cap stocks. Its FX-exposed structure means it carries currency risk on top of US equity risk. It is often used as a long-term core holding for broad participation in the trend of large US technology stocks.

In a word, it is an ETF that holds 100 of America's leading large technology companies in one basket. Just remember that it follows the trend of big tech names such as Apple, Microsoft, and NVIDIA as a whole, and because it is not FX-hedged, both US stock prices and the KRW/USD rate are reflected in performance.