‘SOL US Dividend Dow Jones’, ‘SOL US Dividend Dow Jones(H)’ Dividend ETF Tops Individual Net Buying Ranks 1 and 2

‘SOL US Dividend Dow Jones’ and ‘SOL US Dividend Dow Jones (H)’ ETFs ranked first and second respectively in individual net purchases of dividend ETFs since the beginning of the year.

In particular, SOL US Dividend Dow Jones demonstrated strong interest from individual investors by ranking first in individual net purchases of dividend ETFs in 2022 just one month after its listing last year, and again securing the top spot in 2023. The inflow of 141.9 billion KRW since the beginning of the year is also the highest record in the entire ETF market.

Kim Jeong-hyun, Head of ETF Business Division at Shinhan Asset Management, said, “There is a strong tendency among the 2030 generation to actively manage private pensions using ETFs to prepare for retirement.” He added, “The inflow of over 200 billion KRW into these two products since the beginning of the year is not a temporary phenomenon, and steady inflows of installment funds into pension accounts are expected.”

Supported by such concentrated buying from individual investors, ‘SOL US Dividend Dow Jones’ grew to have the largest net assets among domestic dividend strategy ETFs, reaching 188.8 billion KRW in net assets just seven months after listing, and is now close to surpassing 200 billion KRW in net assets. The hedged version, SOL US Dividend Dow Jones (H), also attracted 40 billion KRW within two months of listing.

Kim said, “As market interest rates decline, the attractiveness of bond-type ETFs is gradually decreasing. Given growing concerns about an economic recession, monthly dividend ETFs that generate a steady monthly cash flow can be an investment alternative for conservative investors.” He added, “Especially in the case of SOL US Dividend Dow Jones, since it is an overseas equity ETF, investing through pension accounts offers advantages such as tax credits, tax deferral, and lower tax rates, making it more favorable compared to general accounts.”

Meanwhile, known as the Korean version of SCHD (Schwab US Dividend Equity ETF), SOL US Dividend Dow Jones recorded an average annual dividend growth rate of about 14% over the past five years based on its underlying index, the Dow Jones US Dividend 100. Regardless of market conditions, it has stably maintained a dividend yield in the mid-3% range, recording a dividend yield of 3.63% in 2022.