Shinhan Asset Management's SOL US Dividend Dow Jones Net Assets Surpass 1 Trillion Won

Shinhan Asset Management announced on the 20th that the net assets of SOL U.S. Dividend Dow Jones, a representative monthly dividend ETF, have surpassed 1 trillion KRW. This is the result of balanced investor interest in SOL U.S. Dividend Dow Jones (711.2 billion KRW), SOL U.S. Dividend Dow Jones (H) (210.4 billion KRW), as well as the recently listed SOL U.S. Dividend U.S. Bond Mixed 50 (91.5 billion KRW) and SOL U.S. Dividend Dow Jones TR (17 billion KRW).

SOL U.S. Dividend Dow Jones, which adds a monthly dividend strategy to SCHD, a leading U.S. dividend growth ETF, has established itself as a leading domestic equity monthly dividend ETF. The country’s first currency-hedged dividend ETF, SOL U.S. Dividend Dow Jones (H), has grown to a net asset size of 200 billion KRW as individual investors seeking to minimize performance impact from exchange rates have net purchased 115.8 billion KRW.

Additionally, individual investors have shown strong interest in SOL U.S. Dividend U.S. Bond Mixed 50 and SOL U.S. Dividend Dow Jones TR, which were listed consecutively in September and October. SOL U.S. Dividend U.S. Bond Mixed 50 ETF, an asset allocation ETF for pension accounts with a strong long-term installment investment nature, is rapidly growing by absorbing replacement demand from investors who previously invested in principal-guaranteed and domestic bond products within the 30% safe asset allocation of retirement pensions.

From a management perspective, it is also evaluated to live up to the nickname “Korean version of SCHD.” As of the end of October, SOL U.S. Dividend Dow Jones recorded a 3rd quarter and annual dividend yield of 0.88% and 2.66%, respectively, slightly surpassing SCHD (Schwab U.S. Dividend Equity ETF), which recorded 2.63%. On a monthly basis, it paid an average dividend of 32.3 KRW with a dividend yield of 0.295%. Therefore, when investing in SOL U.S. Dividend Dow Jones through a pension account with tax deferral benefits, investors could enjoy the full dividend yield compared to SCHD, whose dividend yield decreases after deducting dividend income tax.

Kim Jeong-hyun, Head of ETF Business Division at Shinhan Asset Management, said, “Since its listing, SOL U.S. Dividend Dow Jones has pursued performance as similar as possible to SCHD and strives to pay reasonable monthly dividends by maximizing the use of dividend resources. We expect that investors will benefit from increased investment efficiency by utilizing the four types of SOL U.S. Dividend Dow Jones series according to their investment preferences and objectives.”

Meanwhile, the Korean version of SCHD, the ‘SOL U.S. Dividend Dow Jones’ ETF, has a 10-year average dividend yield of approximately 3.29% based on its underlying index, the Dow Jones U.S. Dividend 100 Index, and a 10-year average dividend growth rate of about 11.5% based on SCHD (Schwab U.S. Dividend Equity ETF). As of the end of last year, the ‘SOL U.S. Dividend U.S. Bond Mixed 50’ ETF, which invests in a 50:50 ratio of 10-year U.S. Treasury bonds and U.S. dividend Dow Jones, allows 100% investment of contributions in retirement pension accounts. The ‘SOL U.S. Dividend Dow Jones TR’ ETF is a product with a concept of reinvesting dividends.