Samsung Asset Management, KODEX Korea Real Estate REITs Infrastructure Individual Net Purchase of 10.9 Billion KRW

Samsung Asset Management announced on the 15th that the KODEX Korea Real Estate REITs Infrastructure ETF recorded a net purchase of 10.9 billion KRW by individual investors within just 8 trading days since its listing.

Launched on the 5th, the KODEX Korea Real Estate REITs Infrastructure ETF is a real estate ETF that diversifies investments across domestic infrastructure assets and domestically listed REITs. It holds 25%, the largest proportion among domestic ETFs, in Macquarie Infrastructure, the only infrastructure fund in Korea, while the remainder is diversified across 14 leading domestic listed REITs such as JR Global REITs, ESR Kendal Square REITs, SK REITs, and Shinhan Alpha REITs.

The reason individual investors are showing interest in the KODEX Korea Real Estate REITs Infrastructure ETF is related to the recent rebound in REIT stocks. The KRX Real Estate REITs Infrastructure Index, the representative REIT index in Korea, has risen 7.0% since hitting its low on January 19. This is presumed to be due to expectations that the global financial market will clearly move toward interest rate cuts, prompting REIT stocks to attempt to break out of their bottom range.

The KODEX Korea Real Estate REITs Infrastructure ETF, which diversifies investments in Macquarie Infrastructure and 14 leading domestic REITs, also recorded a 2.5% increase within 8 trading days after its listing. This is analyzed as a continuation of buying momentum by individual investors.

The KODEX Korea Real Estate REITs Infrastructure ETF pays dividends monthly on the 15th as the payment date and, since it invests in domestically listed REITs and infrastructure funds, capital gains are tax-exempt. Unlike other REIT ETFs, under the Special Tax Treatment Control Act, if held for more than 3 years, investors can benefit from a separate taxation of 9.9% on dividend income up to a maximum investment of 50 million KRW, providing a tax advantage. The total expense ratio is also 0.09% per year, one of the lowest among domestic monthly dividend REIT ETFs that pay dividends monthly.

The KODEX Korea Real Estate REITs Infrastructure ETF is a good investment product for pension investors who want to create a stable cash flow through monthly dividend investments. By constructing a diversified portfolio combining existing monthly dividend products that generate dividend resources based on stocks and bonds with real estate monthly dividend products based on REITs and infrastructure, investors can expect stable cash flow and asset protection. Additionally, in the event of interest rate declines, investors can also aim for capital gains from the increase in asset value of REIT stocks.

Ma Seung-hyun, a manager at Samsung Asset Management, explained, "Monthly dividend investments should ideally be portfolio investments through diversification of underlying assets," adding, "The KODEX Korea Real Estate REITs Infrastructure ETF is based on high-quality domestic REIT products and infrastructure funds." He continued, "Investors can also benefit from tax exemptions on capital gains and a 9.9% separate taxation benefit," and said, "We expect continued interest from individual investors in monthly dividends."