SOL US Dividend Dow Jones (H) Net Assets Surpass 100 Billion Won

The net asset value of Shinhan Asset Management's SOL US Dividend Dow Jones (H) Exchange-Traded Fund (ETF) has surpassed 100 billion KRW. This is interpreted as a reflection of individual investors' desire to minimize the impact of exchange rate fluctuations on performance during periods of high currency volatility.

On the 29th, Kim Jeong-hyun, head of the ETF Business Division at Shinhan Asset Management, stated, "Since the beginning of the year, SOL US Dividend Dow Jones (H) has seen net individual purchases amounting to 71.2 billion KRW, receiving overwhelming preference from individual investors."

Launched in March, SOL US Dividend Dow Jones (H) is a product that adds a 'currency hedge' strategy to the dividend growth ETF 'SOL US Dividend Dow Jones' to preemptively eliminate exchange rate risk. It is the only currency-hedged ETF with a dividend growth strategy in Korea. Based on the underlying index, the Dow Jones US Dividend 100 Index, it has consistently maintained a stable dividend yield in the mid-3% range regardless of market conditions. Over the past five years, it has recorded an average annual dividend growth rate of 14%.

Kim explained, "As exchange rate volatility increases, investor interest in currency-hedged equity ETFs is on the rise. The net asset size of overseas stock currency-hedged ETFs, which was around 1.3 trillion KRW, has grown to 2 trillion KRW, and with the launch of various products, investors now have more options."

In the domestic ETF market, a total of 57 currency-hedged ETFs are listed, including equity, bond, and alternative types. Among the 24 equity ETFs, except for SOL US Dividend Dow Jones (H), most invest in representative indices of various countries.

Kim added, "SOL US Dividend Dow Jones (H) is the only currency-hedged ETF with a dividend growth strategy listed in the domestic market, making it essential for constructing a currency-hedged investment portfolio beyond representative indices. It is important to select currency-exposed and currency-hedged products according to investment objectives and risk preferences and to invest steadily."