Shinhan Asset Management's SOL US Dividend US Bond Mixed 50 Early Sellout

Shinhan Asset Management announced on the 26th that the ‘SOL US Dividend US Bond Mixed 50’ ETF, which was listed on the 24th, sold out its initial growth volume of 10 billion KRW within two days. Except for 1.8 billion KRW purchased by individual investors through general and pension savings accounts, most of the purchases were made through retirement pension (DC and IRP) accounts.

Industry experts consider it unusual that a large amount of money has flowed into a pension account asset allocation ETF, which is characterized by long-term installment investment rather than a stock-themed product that inevitably attracts investment demand depending on market conditions, from the early stages of listing.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "As the domestic pension market size rapidly grows and the utilization of ETFs in pension accounts increases, there is a deepening consideration of investment strategies that can fill 30% of retirement pensions with safe assets." He added, "From the first day of listing, replacement demand from investors who had been investing in principal-guaranteed and domestic bond-type products as existing safe assets poured in, and it is understood that more than 80% of the inflows came from retirement pension accounts."

The SOL US Dividend US Bond Mixed 50 ETF invests in the US Dividend Dow Jones and 10-year US Treasury bonds at a 50:50 ratio and is the only product listed in Korea’s US Dividend Dow Jones ETFs that allows 100% of contributions from retirement pension (DC/IRP) accounts to be invested.

Kim said, "If 30% of safe assets within retirement pensions are filled with the SOL US Dividend US Bond Mixed 50, monthly dividends will be received, creating a synergy effect with existing stock-type monthly dividend products and generating a richer cash flow." He added, "Depending on investment preferences and objectives, the stock ratio within retirement pensions can be increased up to 85%, making it an efficient investment alternative even for aggressive investors."

The SOL US Dividend US Bond Mixed 50 ETF will pay its first monthly dividend on November 18, utilizing the distribution resources to the fullest extent, just like the existing monthly dividend products of SOL ETF.