Hantoo Asset Management, ACE US WideMoat Value Stock ETF First Quarterly Dividend

Korea Investment Trust Management announced on the 3rd that the ACE US WideMoat Value Stock Exchange-Traded Fund (ETF) will pay a dividend of 90 KRW per share. This is the first time the ACE US WideMoat Value Stock ETF has paid a dividend.

The ACE US WideMoat Value Stock ETF is characterized by selecting and investing in companies listed in the US that have an Economic Moat (high entry barriers). The Economic Moat evaluation method considers intangible assets such as brand premium, cost advantage, switching costs, network effects, and efficient scale.

Since the listing of the ACE US WideMoat Value Stock ETF in October 2018, Korea Investment Trust Management maintained a strategy of full reinvestment without paying dividends. However, reflecting the increased demand for dividend investing over the past 1-2 years, the dividend payment policy was changed at the end of last month to decide on quarterly dividends. Starting with the first dividend payment, dividends are expected to be paid every quarter going forward.

Given the excellent performance of the ACE US WideMoat Value Stock ETF so far, this change in dividend payment policy is expected to attract significant attention from investors. The ACE US WideMoat Value Stock ETF has recorded returns of 149.54% since listing and 114.78% over the past 5 years.

Seunghyun Kim, ETF Consulting Manager at Korea Investment Trust Management, said, "With excellent long-term performance combined with the change in dividend payment policy, the ACE US WideMoat Value Stock ETF is expected to receive particular interest in the pension market." He added, "Unlike the US-listed ETF MOAT, which pays dividends once a year, the ACE US WideMoat Value Stock ETF pays quarterly dividends. When investing through pension accounts, investors can benefit not only from tax advantages but also generate cash flow through dividends."

He continued, "Based on Morningstar's research results, the ACE US WideMoat Value Stock ETF, which invests in companies such as Google (Alphabet A), Tyler Technologies (TYL), and Etsy (ETSY), has demonstrated strong defensive capabilities even in down markets, proving to be a product resilient to volatility."