Shinhan Asset Management announced that the "SOL Korea High Dividend" exchange-traded fund (ETF), which was listed in September, will pay its first monthly dividend on the 17th. The expected distribution is 95 won per share, and the monthly distribution rate is about 0.86%.
SOL Korea High Dividend is a next-generation monthly dividend ETF that actively reflects the government's latest dividend policy stance, such as expanding separate taxation on dividend income, reducing dividends and encouraging the burning of treasury stocks. Since the first day of listing, it has received high market attention and recorded a net purchase amount of 21.5 billion won by individual investors, and since the listing, the cumulative net purchase amount of individual investors has been 112.5 billion won. It is the No. 1 high dividend ETF in Korea.
The ETF's net assets, which were listed at 10 billion won, increased to 147 billion won as of the closing price on the 14th.
"SOL Korea High Dividend ETF is characterized by a portfolio that reflects the changing improvement of domestic dividend policies and maximizes real dividend yields," said Kim Jung-hyun, head of Shinhan Asset Management's ETF business. "We plan to steadily provide attractive monthly dividends to meet the needs of domestic dividend investors."
Unlike existing high dividend ETFs that simply contain stocks with high dividend yields, SOL Korea High Dividend ETF is a strategic high dividend ETF that comprehensively considers shareholder return factors such as separate dividend income taxation, reduced dividends, and treasury stock purchase and incineration policies. In particular, dividends of companies implementing reduced dividends are differentiated in that they are expected to increase the actual amount of distribution received through separate taxation or non-taxation benefits.
The portfolio consists of major financial holding companies such as ▲ Woori Financial Group ▲ Hana Financial Group ▲ Shinhan Financial Group ▲ KB Financial Group, as well as insurance businesses such as ▲ Hyundai Motor ▲ Kia ▲ KT&G's representative high dividend stocks ▲ Samsung Life Insurance ▲ Samsung Fire & Marine Insurance. Of the total portfolio, the proportion of companies subject to separate taxation on dividend income is about 76%, and the proportion of companies implementing reduced dividends is about 22%.
"SOL Korea High Dividend ETF is a particularly suitable product for investors who prefer regular income by providing stable distributions every month, as well as pension account investors who value the formation of long-term assets such as pension savings and IRP," said Kim. "With market volatility expanding due to external variables such as interest rates and exchange rates, it is becoming more important to allocate dividend-oriented defensive assets that can secure cash flows without being swayed by short-term fluctuations."
He added, "As institutional changes, such as the expansion of separate taxation on dividend income, are also further enhancing the investment attractiveness of the high dividend strategy, the utilization of SOL Korea's high dividend ETF will increase further."
