SOL Short-Term Bond Active ETF Net Assets Surpass 600 Billion Won

Shinhan Asset Management announced on the 12th that the net assets of the 'SOL Ultra-Short-Term Bond Active ETF' have surpassed 600 billion KRW.

This is the result of strong demand from individual investors and bank customers seeking to manage liquidity funds stably. Recently, the KOFR (Korea Overnight Financing Rate) and 91-day CD rates have been formed at levels of 2.9% to 3.1%. Investors are paying attention to the SOL Ultra-Short-Term Bond Active ETF, which is expected to have a maturity yield to maturity (YTM) of 3.33% per annum.

The SOL Ultra-Short-Term Bond Active ETF saw an inflow of about 400 billion KRW last year, recording the highest net asset growth rate (448.4%) among major domestic parking-type ETFs. This year, net assets have increased by about 130 billion KRW, continuing the momentum from last year.

The SOL Ultra-Short-Term Bond Active ETF is managed stably by constructing a portfolio mainly composed of high-quality short-term financial products such as ultra-short-term bonds with a remaining maturity of less than three months (credit rating A- or higher) and commercial paper (A2- rating or higher), reducing volatility caused by interest rate fluctuations. It is a product that seeks excess returns by securing additional interest income through discovering undervalued high-quality stocks.

It has the advantage of allowing 100% investment of accumulated funds in retirement pension (DC/IRP) accounts. Its utility is especially high not only in pension accounts but also in ISA (Individual Savings Account).

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "Volatility in the U.S. market has increased around the inauguration of U.S. President Donald Trump," adding, "Investor demand for parking-type ETFs, which serve as a refuge for surplus funds, is increasing again."

He continued, "The SOL Ultra-Short-Term Bond Active ETF has maintained a top-level YTM among parking-type ETFs since its listing," and said, "There is steady demand from individual investors and bank customers who want to manage short-term funds stably."

Shinhan Asset Management will launch the SOL Mid-Short-Term Corporate Bond (A- or higher) Active ETF on the 18th as a preemptive response to the upcoming interest rate decline period. This product aims to pursue market interest rate + α returns through selective investment in credit bonds according to market conditions, with an expected YTM of about 3.6% as of now.