Shinhan Asset Management Launches New Monthly Dividend ETF 'SOL US Dividend Dow Jones (H)'

Shinhan Asset Management has launched its third monthly dividend exchange-traded fund (ETF).

According to the Korea Exchange on the 21st, Shinhan Asset Management listed the "SOL US Dividend Dow Jones (H)" on the KOSPI market on the same day. This product adds a currency hedging strategy to the previously launched "SOL US Dividend Dow Jones."

The underlying index, the Dow Jones US Dividend 100 Index, consistently maintains a stable dividend yield in the mid-3% range regardless of market conditions. The dividend growth rate has averaged 14% annually over the past five years, making it suitable for a dividend growth strategy.

The ETF's size has also grown significantly. The Korean version of SCHD, "SOL US Dividend Dow Jones," which was listed on November 15 last year, has increased in size more than tenfold in five months, recently surpassing 90 billion KRW in net assets.

In particular, the proportion of systematic purchases through pension accounts is high. As of the 17th, the net purchase amount by individuals since the beginning of the year was 52.4 billion KRW, ranking 6th among 682 ETFs listed in the domestic market. It is the leader among equity ETFs investing in the US market.

Kim Jeong-hyun, head of the ETF Business Division at Shinhan Asset Management, explained, "Due to the recently increased currency volatility, many investors find it burdensome to invest in the US market, so we planned this product to provide more options. It will be suitable for investors who want to receive monthly dividends while pursuing only the performance of the underlying assets, similar to SCHD."

Meanwhile, this product applies the same annual fee of 0.05% as the existing SOL US Dividend Dow Jones and is scheduled to pay the first monthly dividend on May 1.