SOL US S&P500 Breeze... Retail Investors Captivated by Monthly Dividends

[Asia Economy Reporter Junho Hwang] Individual investors continue to show net purchases of Shinhan Asset Management's 'SOL US S&P500,' the first monthly dividend product in Korea. Interest in monthly dividends is believed to be driving the net purchases.

According to Shinhan Asset Management on the 22nd, since the listing of SOL US S&P500 on June 21, there have been net purchases by individuals on 41 out of 43 trading days. Due to individual net purchases, the ETF's net assets have grown to around 20 billion KRW.

Kim Jeonghyun, head of the ETF Management Center at Shinhan Asset Management, stated, “Despite the challenging market environment since listing, the total net assets have tripled," and "unlike other S&P500 ETFs of the same type where individual investor demand was irregular, steady net purchases have continued." He added, "Most of the increase is from individual investors' funds, and including pension accounts, the inflow is expected to be even larger."

This is seen as data reflecting individual investors' interest in monthly dividend investments using ETFs. This ETF paid a dividend of 11 KRW per share last month.

Kim said, "As the stock market entered a bear market rally phase, the S&P500 index rose 11.82% over the past month, showing a larger rebound compared to the KOSPI index's 5.59% increase," and "investors were attracted because it allows efficient response and has a long-term upward trend."