Mirae Asset debuts AI-recommended ETF on NYSE to invest in US bonds

Mirae Asset Financial Group, one of the largest asset managers in South Korea, has launched its first exchange-traded fund (ETF) investing in high-quality US bonds picked by artificial intelligence, aimed at outperforming traditional methods via a data-driven approach.

Global X Management Co., the New York-based affiliate of the group’s flagship unit Mirae Asset Global Investments Co., earlier this week listed the ETF, called the Global X Investment Grade Corporate Bond ETF (GXIG), on the New York Stock Exchange.

GXIG is actively managed by Global X, Mirae Asset’s US-based ETF arm, and leverages proprietary AI models developed by WealthSpot, Mirae Asset Group’s AI subsidiary established last year.

Global X said GXIG is an innovative addition to its suite of fixed income funds with an actively managed approach that incorporates the usage of a proprietary quantitative factor model and deep neural network to screen the investable universe and provide portfolio managers with insight to support the bond selection process.

"The fund addresses growing investor demand for higher-quality fixed income exposure by offering actively managed access to investment grade corporate bonds," said Pedro Palandrani, head of Product Research & Development at Global X. "As interest rate and credit environments grow more complex, GXIG can help fill the gap by introducing an adaptive, data-driven solution in the fixed income space."

AI TO DRIVE MIRAE’S NEXT-PHASE GROWTH

Park Hyeon-joo, founder and global strategy officer (GSO) of Mirae Asset Financial Group, has said AI technology will drive Mirae’s next-phase growth.

“The US stock market already reflects information in real time and leaves little room for arbitrage,” said a Mirae Asset official. “In contrast, fixed income markets, particularly in the investment-grade space, remain underexploited from an AI standpoint.”

Founded in 2008, Global X manages over $55 billion in assets and offers a product lineup that features a wide range of ETF strategies.

Global X is a unit of Mirae Asset Financial Group, a global leader in financial services, with more than $600 billion in assets under management worldwide.

Mirae Asset has an extensive global ETF platform ranging across the US, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea and Vietnam.

“GXIG represents Mirae’s ambition to deliver differentiated products that challenge the status quo in global asset management,” said Lee Jun-yong, vice chairman of Mirae Asset Global Investments.

Write to Su-Ji Na at suji@hankyung.com
In-Soo Nam edited this article.