Shinhan Asset Management's 'SOL US Dividend US Bond Mixed 50'... Net Assets Surpass 200 Billion KRW in 3 Months Since Listing

Shinhan Asset Management announced on the 15th that the net assets of the ‘SOL Miguk Bae-dang Migukchae Honhab 50’ Exchange-Traded Fund (ETF) have surpassed 200 billion KRW.

This achievement came about three months after listing, representing an increase of more than 20 times the initial net assets. Notably, over 90% of the net purchases were made through retirement pension accounts, indicating strong investor interest from pension investors.

Among the funds flowing into the SOL Miguk Bae-dang Migukchae Honhab 50, excluding 3.6 billion KRW purchased by individual investors through general and pension savings accounts and purchases made via banks, more than 90% were bought through retirement pension (DC and IRP) accounts. Starting with 15.5 billion KRW in September, monthly inflows have sharply increased due to word-of-mouth among investors.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, explained, "It appears that pension investors aiming for year-end tax deductions have concentrated their purchases on the SOL Miguk Bae-dang Migukchae Honhab 50 ETF. The unusual demand for asset allocation ETFs designed for pension accounts, which have a strong long-term installment investment nature, reflects pension investors’ significant interest in safe assets."

The ‘SOL Miguk Bae-dang Migukchae Honhab 50’ is a product that invests in the representative dividend growth ETF, the US Dividend Dow Jones, and 10-year US Treasury bonds at a 50:50 ratio. Among US Dividend Dow Jones ETFs listed domestically, it is the only one that allows 100% of contributions from retirement pension (DC/IRP) accounts to be invested.

With a portfolio free from concentration in specific sectors, it offers performance protection even in volatile markets, leveraging the strengths of the US Dividend Dow Jones. Additionally, it enhances stability by investing in US bonds, which are classified as relatively safe assets. It is a monthly dividend product that can maximize the stock portion within retirement pensions, aiding in the construction of diverse pension investment strategies.

Moreover, since it invests in US stocks, the most preferred investment region for pension investors, it maximizes the tax deferral benefits of retirement pension accounts. Dividend income tax of 15.4% on capital gains is exempted. Upon receiving pension payments after age 55, only pension income tax (3.3% to 5.5%) is incurred, allowing investors to use the tax savings as reinvestment capital instead of paying taxes.

Meanwhile, Shinhan Asset Management is striving to diversify options 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 Miguk Bae-dang Dow Jones, SOL Miguk Bae-dang Dow Jones (H) with a currency hedging strategy, SOL Miguk Bae-dang Dow Jones TR which reinvests dividends, and the SOL Miguk Bae-dang Migukchae Honhab 50 ETF that allows 100% investment from retirement pension accounts. The total assets under management amount to 1.3 trillion KRW.