Shinhan Asset Management Lists ‘SOL 30-Year Korean Treasury Bond Active ETF’

Shinhan Asset Management announced on the 16th that it has listed the ‘SOL 30-Year Korean Treasury Active’ exchange-traded fund (ETF) on the Korea Stock Exchange.

The SOL 30-Year Korean Treasury Active ETF is suitable for investors considering long-term bond investments for asset allocation, as it can seek capital gains when interest rates fall and has the lowest total expense ratio among long-term bond ETFs at 0.05%, making it cost-effective.

The Bank of Korea unanimously decided to keep the base interest rate unchanged at 3.5% for the eighth consecutive time at the recent Monetary Policy Committee meeting. Given the external conditions and the sensitivity of Korea’s economy to household debt, most experts believe that the possibility of further base rate hikes is low. Therefore, with the upward movement of the base rate blocked and discussions focusing on potential rate cuts, the attractiveness of long-term bonds as an investment is gradually increasing.

Additionally, the ‘SOL 30-Year Korean Treasury Active ETF’ is classified as a safe asset in retirement pension (IRP/DC) accounts, allowing investment of up to 100% of accumulated funds. In particular, individual investors can efficiently invest in bonds that are otherwise difficult to access due to high trading units (KRW 10 billion for on-exchange trading) and restrictions on the number of bond issues by utilizing the ETF.

Meanwhile, Shinhan Asset Management continues to strengthen its lineup of bond ETFs. In the past year, it has newly listed six products, and the ‘SOL Ultra-Short-Term Bond Active’ and ‘SOL US 30-Year Treasury Covered Call ETF’ have consecutively attracted investor interest, increasing the total net assets of bond ETFs by approximately KRW 880 billion.