Shinhan Asset Management announced on the 3rd that the monthly dividend exchange-traded fund (ETF), which reflects the "dividend-oriented" standard in its investment strategy, and "SOL Dividend-oriented Top Pick Active" will pay the first monthly dividend.
The planned distribution is 70 won per share, with a monthly distribution rate of about 0.54% (as of the 26th of last month) and about 4.3% based on annual conversion.
"SOL Dividend Propensity Top Pick Active ETF" uses dividend propensity as a key investment criterion, which shows how much profits a company earns are returned to shareholders.
According to the 2025 tax law amendment, companies with a dividend payout ratio of 40% or more among those whose cash dividend has not decreased compared to the previous year are classified as excellent dividends or companies with a dividend payout ratio of 25% or more and a cash dividend increase of 10% or more compared to the previous year. SOL Dividend Propensity Top Pick Active ETF has constructed a comparative index methodology so that only companies that meet these dividend payout ratio requirements can be incorporated into the portfolio.
Kim Jung-hyun, general manager of Shinhan Asset Management's ETF business, said, "We have recently added 'SL', 'Seoul Guarantee Insurance' and 'SOOP', which have recently raised their dividend payout ratio to meet the requirements for separate taxation of dividend income, to the portfolio. "In the face of strengthening corporate shareholder returns, companies with excellent dividend payout ratio that are expected to benefit from the policy can be incorporated in a timely manner through active strategies." "It is a product that can simultaneously pursue stable dividends of high-dividend companies, benefiting from shareholder returns and re-rating stock prices based on revaluation of corporate value," he stressed.
The SOL Dividend Propensity Top Pick Active ETF, which was listed in January, achieved a cumulative return of 28.55% since its listing amid a steep upward trend in the domestic stock market. Net assets are also growing rapidly. The net assets of this ETF, which was listed at 10 billion won, increased by about six times in a month and a half to 61.3 billion won as of the closing price on the 27th.
"As dividends of domestic companies are usually outlined through provisional performance and guidance from January to February, and are finalized through audits and shareholders' meetings in March, companies will move more to meet the requirements for separate taxation of dividend income," Kim said. "As each company has different dividend base dates and the intensity of benefits can be differentiated, active operations with enhanced flexibility will be able to meet the new needs of domestic dividend investors."
SOL Dividend-oriented Topic Active ETF consists of 23 items, including ▲ Woori Financial Group ▲ Kia ▲ KT&G ▲ Samsung Fire & Marine Insurance ▲ Hyundai Elevator ▲ Samsung Securities ▲ NH Investment & Securities ▲ BNK Financial Group ▲ GS. Due to the nature of active ETFs, the components and weight may change during the management process.
General Manager Kim added, "It is necessary to invest in the recognition that separate taxation applies only to dividends of individual companies and ETF distributions are excluded from the current separate taxation of dividend income."
