Shinhan Asset Management Launches New 'SOL US Dividend Dow Jones TR' ETF

Shinhan Asset Management announced on the 8th that it will list the first dividend reinvestment product among U.S. dividend Dow Jones exchange-traded funds (ETFs), ‘SOL U.S. Dividend Dow Jones TR,’ on the Korea Exchange.

The SOL U.S. Dividend Dow Jones TR ETF does not distribute the dividends generated monthly to investors but reinvests them into the index. The 'TR' (Total Return) in the product name refers to total return, which is the concept of adding dividend reinvestments to the price fluctuations of the index.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “For investors who steadily accumulate SOL U.S. Dividend Dow Jones through installment savings, it is more cost-efficient than individually reinvesting the dividends received in cash every month. Especially, since dividend income tax is not imposed during the investment period, investors can enjoy tax deferral benefits even when investing through a general account.”

The SOL U.S. Dividend Dow Jones TR ETF is the fourth product in the ‘SOL U.S. Dividend ETF Series,’ following the existing SOL U.S. Dividend Dow Jones, the currency-hedged SOL U.S. Dividend Dow Jones (H), and SOL U.S. Dividend U.S. Treasury Mixed 50, which can be invested 100% through retirement pension accounts. With steady inflows mainly from pension investors, the total assets under management for the series reach 880 billion KRW. In particular, the SOL U.S. Dividend U.S. Treasury Mixed 50 ETF, which was listed last month, is on the verge of surpassing 30 billion KRW in net assets just two weeks after listing, driven by explosive demand from retirement pension investors for safe asset replacement.

Kim said, “The advantage of the TR product is that it can maximize the long-term performance and compound effect of the ETF through automatic dividend reinvestment. We expect it will also help improve investment efficiency for investors who steadily accumulate SOL U.S. Dividend Dow Jones through tax-saving accounts such as pension accounts and ISAs.”