Shinhan Asset Management is listing a new U.S. dividend Dow Jones series ETF, ‘SOL U.S. Dividend U.S. Treasury Mixed 50,’ on the KOSPI market. It is the only product among domestically listed U.S. dividend Dow Jones ETFs that allows 100% investment of contributions from retirement pension (DC/IRP) accounts.
The SOL U.S. Dividend U.S. Treasury Mixed 50 ETF invests in the U.S. dividend Dow Jones and 10-year U.S. Treasury bonds at a 50:50 ratio. With a balanced portfolio composition without concentration in any specific sector, it combines the advantages of the U.S. dividend Dow Jones, which can defend performance even in volatile markets through dividends exceeding 3% annually, with U.S. Treasury bond investments classified as safe assets to mitigate volatility.
As U.S. interest rates enter a rate-cutting cycle, benefits from rising bond yields due to falling interest rates can also be expected. Investors can anticipate both attractive dividend yields and capital gains.
Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "With recent market volatility expanding and uncertainty increasing, interest in investing in U.S. dividend growth stocks is on the rise. By combining the U.S. dividend Dow Jones, which recorded a 3.64% dividend yield last year, with the 10-year U.S. Treasury bond, this strategy strengthens stability while maintaining dividend yields." He added, "We expect this product to address the concerns of retirement pension investors regarding the 30% allocation to safe assets."
The SOL U.S. Dividend U.S. Treasury Mixed 50 ETF is designed to allow dividend payments in the middle of each month for the first time among the SOL monthly dividend ETF series. Therefore, when invested alongside existing monthly dividend products like SOL U.S. Dividend Dow Jones, investors can receive dividends twice a month, enabling easier cash flow generation.
Shinhan Asset Management is striving to diversify investors’ choices through the expansion of the ‘SOL U.S. Dividend Dow Jones series.’ Reflecting the needs of U.S. dividend growth stock investors, the ‘SOL U.S. Dividend Dow Jones TR’ ETF will be listed next month.
Like other existing monthly dividend products in the SOL ETF lineup, the SOL U.S. Dividend U.S. Treasury Mixed 50 ETF will maximize the use of distribution resources and pay its first monthly dividend on November 18.
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