'SOL US Dividend US Bond Mixed 50' Listed, Net Assets Increase 15 Times in 2 Months

Over 80% Fund Inflow from Retirement Pension Accounts
Top Individual Net Buyer in Asset Allocation ETFs Over the Past 3 Months

Shinhan Asset Management announced on the 16th that the net asset size of the 'SOL US Dividend US Bond Mixed 50' ETF has surpassed 150 billion KRW. It increased more than 15 times in about two months since its listing at the end of September.

With the rapid increase in ETF investments within pension accounts, it is interpreted that the demand for replacing safe assets within retirement pension (DC and IRP) accounts was quickly absorbed. Additionally, among 43 asset allocation-type (multi-asset) ETFs, it ranked first in net purchases by individual investors in general accounts, including pension savings accounts, over the past 1 month and 3 months.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, explained, "Individual investors have net purchased more than 120 billion KRW, which accounts for about 80% of the total, through retirement pension accounts since the listing." He added, "The SOL US Dividend US Bond Mixed 50 ETF is rapidly establishing itself as an alternative that resolves the 30% safe asset investment concern within retirement pension accounts among pension investors, and the pace of fund inflow is gradually accelerating."

The SOL US Dividend US Bond Mixed 50 ETF, which invests in the US Dividend Dow Jones and 10-year US Treasury bonds at a 5 to 5 ratio, is the only US Dividend Dow Jones ETF listed domestically that allows 100% of contributions in retirement pension (DC/IRP) accounts to be invested.

In addition to the advantage of the US Dividend Dow Jones, which can defend performance even in volatile markets, it strengthens stability by investing in US bonds, which are relatively classified as safe assets. It is a monthly dividend product that helps construct various pension investment strategies by allowing the stock portion within retirement pensions to be maximized.

Since it invests in US stocks, the most preferred investment region for pension investors, it also maximizes the tax deferral effect, one of the advantages of retirement pension accounts. Dividend income tax of 15.4% on capital gains is exempted, and only pension income tax (3.3%~5.5%) is paid when receiving pension after age 55. Instead of paying taxes, the earnings can be used as reinvestment funds.

Kim said, "As the year-end deadline for pension account deposits approaches, inquiries about the SOL US Dividend US Bond Mixed 50 ETF from investors aiming to meet their contribution limits are increasing," adding, "We are striving to meet the investment needs of retirement pension investors through the expansion of the retirement pension lineup in the banking sector."

Shinhan Asset Management is working to broaden the choices for US dividend growth stock investors through four types of the ‘SOL US Dividend Dow Jones Series.’ These include the Korean version of SCHD, SOL US Dividend Dow Jones, SOL US Dividend Dow Jones (H) with a currency hedging strategy, SOL US Dividend Dow Jones TR which reinvests dividends, and the SOL US Dividend US Bond Mixed 50 ETF that allows 100% investment in retirement pension accounts. The total assets under management reach 1.16 trillion KRW.