Shinhan Asset Management Surpasses 50 Billion KRW in AUM for US Index Funds

Shinhan Asset Management announced on the 2nd that its U.S. representative index funds (U.S. S&P 500 Index, U.S. Nasdaq 100 Index) have surpassed 50 billion KRW in assets under management.

According to fund rating agency Zeroin on the 2nd, as of the 29th of last month, the ‘Shinhan U.S. S&P 500 Index Fund (UH)’ and the ‘Shinhan U.S. Nasdaq 100 Index Fund (UH)’ recorded 6-month returns of 25.46% and 21.43%, respectively. Thanks to their excellent performance, more than 20 billion KRW in net inflows have been recorded since the beginning of the year, and the funds surpassed 50.8 billion KRW in assets under management within 10 months of launch.

The secret to this growth lies in Shinhan Asset Management’s differentiated strategy. One key factor is the shortened redemption cycle, which enhances investment convenience. Generally, equity funds investing in the U.S. require 6 business days (T+5 days for redemption payment) for redemption, whereas Shinhan Asset Management’s U.S. index funds allow redemption in 5 business days (T+4 days for redemption payment). Additionally, the fees are among the lowest in the industry, making them advantageous for long-term investment. In particular, the retirement pension class of the U.S. representative index funds has a total fee of approximately 0.30% (based on the C-re class), which is competitive compared to other funds.

Shinhan Asset Management’s U.S. index funds are characterized by investing in leading U.S. companies with continuous innovation and shareholder-friendly policies. The ‘Shinhan U.S. S&P 500 Index Fund’ consists of 500 large-cap blue-chip stocks representing the U.S. market and reflects about 80% of the U.S. stock market’s market capitalization. The ‘Shinhan U.S. Nasdaq 100 Index Fund’ is composed of 100 innovative companies driving the U.S. tech stock rally, including Microsoft, Apple, Nvidia, Tesla, and Amazon. Since 2011, the cumulative returns of the S&P 500 and Nasdaq 100, which serve as the underlying indices for Shinhan’s U.S. index funds, have been 313% and 709%, respectively.

Kim Ki-deok, Head of the Quantitative Management Center at Shinhan Asset Management, stated, “Although investors’ interest in U.S. stocks continues to grow, trading individual stocks or ETFs involves difficulties such as selecting specific stocks and timing investments. The Shinhan U.S. Index Fund manages risk by diversifying investments across representative U.S. companies, and the manager tracks the index while operating the fund in a way that benefits it. This makes it the most efficient way to invest in the U.S. market.”