Dividend Payment on the 15th of Every Month
Optimal for Long-Term Investment with a Balanced Portfolio
The 'Korean version of SCHD' that pays dividends in the middle of the month instead of the end of the month has been launched with the lowest fees in its class.
Samsung Asset Management announced on the 13th that it will list the monthly dividend type 'KODEX US Dividend Dow Jones ETF,' the Korean version of SCHD.
KODEX US Dividend Dow Jones is the Korean version of the well-known SCHD ETF (Schwab US Dividend Equity ETF) among domestic investors and tracks the 'Dow Jones U.S. Dividend 100' index. It invests only in the top 100 U.S. stocks that have paid dividends for 10 years, selected based on criteria such as free cash flow, ROE, dividend yield, and 5-year dividend growth rate.
KODEX US Dividend Dow Jones features monthly dividends based on the 15th of each month and an annual fee of 0.0099%, the lowest in its class. Since similar existing products pay dividends at the end of the month, using this product for diversified investment allows the construction of a portfolio that receives dividends every two weeks. The application of the lowest fee of 0.0099% reduces the cost burden for investors.
US Dividend Dow Jones limits the maximum weight of any specific sector to 25% and the maximum weight of a single stock to 4%, resulting in a balanced portfolio where the current largest sector, financials, accounts for only about 18%. This contrasts with the technology sector weights of 52% and 32% in the S&P 500 and Nasdaq 100 indices, respectively. Therefore, it can serve as a good complement for investors focused on tech stocks to help withstand volatile markets.
KODEX US Dividend Dow Jones currently expects a dividend yield of about 3.87% annually and is a product that allows dividend growth for long-term investment, given that the index's dividends have increased every year over the past 10 years.
Han Dong-hoon, manager at Samsung Asset Management, said, "US Dividend Dow Jones, with its solid fundamentals of 100 stocks and balanced portfolio, is steadily gaining attention as a worry-free long-term investment product. Given its differentiation with monthly dividends and the lowest fee rate, we expect the KODEX US Dividend Dow Jones ETF to be a good product for investors considering investment in US Dividend Dow Jones."
Samsung Asset Management is holding an event called 'KODEX US Dividend Dow Jones ETF Product Quiz' to commemorate the product launch. Anyone can participate on the KODEX website until the 6th of next month.
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