Hantoo Asset Management, ACE US Dividend Dow Jones ETF... "Individual Net Purchases Exceed 150 Billion Won This Year"

Korea Investment Trust Management announced on the 9th that the net purchase amount by individuals of the ACE U.S. Dividend Dow Jones Exchange-Traded Fund (ETF) has surpassed 150 billion KRW since the beginning of the year.

According to the Korea Exchange, the net purchase amount by individuals of the ACE U.S. Dividend Dow Jones ETF reached 150.2 billion KRW as of the closing price on the 6th of this month, surpassing 150 billion KRW. In particular, individual investors net purchased the ACE U.S. Dividend Dow Jones ETF on all but two trading days in November. The ETF’s net asset value grew from 193.1 billion KRW at the end of last year to 555.1 billion KRW as of the previous day, expanding by 187.47% this year alone.

The ACE U.S. Dividend Dow Jones ETF, launched by Korea Investment Trust Management in October 2021, is the first domestic ETF tracking the Dow Jones U.S. Dividend 100 Price Return Index. The ACE U.S. Dividend Dow Jones ETF gained recognition among ETF investors by tracking the same index as the Schwab US Dividend Equity ETF (SCHD), a leading U.S. dividend growth stock ETF. According to the Korea Securities Depository, SCHD ranked first among overseas stocks invested in by "Seohak Gaemi" (domestic investors investing in foreign stocks) this year. During this period, domestic investors’ net purchases of SCHD amounted to 714.2 million USD.

The ACE U.S. Dividend Dow Jones ETF has continuously improved its product to meet investor demand and consistently delivered excellent returns, earning the preference of individual investors. Initially listed as a quarterly dividend product in 2021, it was converted to a monthly dividend product in June last year, and in August this year, the monthly dividend payment date was changed. The dividend payment, previously based on the last business day of each month, was shifted to the 15th of each month. This allows investors who simultaneously invest in products with dividends paid at the end of the month to receive dividends twice a month.

Among five domestically listed ETFs tracking the same index, the ACE U.S. Dividend Dow Jones ETF recorded the highest total return including dividends. According to FnGuide, the ACE U.S. Dividend Dow Jones ETF posted returns of △3 months (13.10%) △6 months (17.72%) △year-to-date (28.72%) △1 year (33.66%), outperforming other ETFs tracking the same index during the same periods.

Kim Seunghyun, ETF Consulting Manager at Korea Investment Trust Management, stated, “The ACE U.S. Dividend Dow Jones ETF has been chosen by many individual investors this year based on its excellent performance. Especially when invested through pension accounts, investors can save on trading fees and currency exchange costs compared to the U.S. SCHD, and also enjoy pension tax deduction benefits.”

Meanwhile, the ACE U.S. Dividend Dow Jones ETF does not guarantee future returns based on past performance, and principal loss may occur depending on management results.