Shinhan Asset Management Surpasses 100 Billion KRW in AUM for US Major Index ETFs

Shinhan Asset Management announced on the 7th that the total assets under management of its U.S. representative index fund series, ‘Shinhan US S&P500 Index Fund’ and ‘Shinhan US Nasdaq100 Index Fund,’ have surpassed 100 billion KRW. More than 73 billion KRW has flowed in since the beginning of the year, achieving this milestone within one year of launch.

According to KG Zeroin, as of the 1st of this month, the 6-month returns of ‘Shinhan US S&P500 Index Fund (UH)’ and ‘Shinhan US Nasdaq100 Index Fund (UH)’ recorded double-digit figures of 16.69% and 15.29%, respectively.

The excellent performance and capital inflow of the Shinhan US Index Fund series are thanks to its differentiated management strategy. By shortening the redemption cycle to 5 business days, it offers the fastest redemption among U.S. equity funds. Investors can invest with a redemption cycle similar to domestic equity funds. Both products are managed with the lowest fees in the industry among funds of the same type, with a management fee of 0.09% and a total fee of 0.26% (based on the online class). This is optimized for long-term investment and contributes to improving investors’ returns.

Additionally, the series was launched with two types of products: a currency-hedged type (H) that minimizes exchange rate fluctuation risk, and a currency-exposed type (UH) where exchange rate fluctuations are linked to performance, broadening the range of choices. This provides various investment opportunities for investors who want to quickly respond to market changes and invest in the U.S.

The Shinhan Asset Management U.S. Index Fund series is characterized by investing in representative indices of the U.S. stock market. The ‘Shinhan US S&P500 Index Fund’ consists of 500 large-cap blue-chip stocks representing the U.S. market. It tracks the S&P 500 index at a 100% level. The ‘Shinhan US Nasdaq100 Index Fund’ diversifies investment in representative technology and growth stocks in the U.S. market, consisting of 100 innovative companies.

Kim Kyung-il, Head of WM Pension Channel at Shinhan Asset Management, stated, “This year, the U.S. stock market is moving centered on big tech companies, making individual stock investment more challenging.” He added, “In a market currently led by a small number of stocks, index funds that diversify investment in representative U.S. companies are the most effective alternative compared to individual stock investment.”