SOL Parking-type ETF Series, Outstanding YTM Performance

Amid increasing volatility in the global financial markets due to the US-originated tariff war, parking-type ETFs are gaining attention again.

Shinhan Asset Management announced on the 16th that the SOL Ultra-Short-Term Bond Active ETF recorded the highest yield to maturity (YTM) of 3.08% among parking-type ETFs.

The SOL Ultra-Short-Term Bond Active ETF constructs a portfolio mainly consisting of high-quality short-term financial products such as ultra-short-term bonds (with a remaining maturity of less than 3 months and credit rating of A- or higher) and commercial paper (rated A2- or higher). It is managed stably by reducing volatility caused by interest rate fluctuations and seeks excess returns by securing additional interest income through discovering undervalued quality stocks.

The SOL Medium-Short-Term Corporate Bond (A- or higher) Active ETF, launched in February to coincide with the interest rate decline period, posted 3.34%, and the SOL CD Rate & Money Market Active ETF, which is the first parking-type ETF to pay monthly dividends, also outperformed similar products with a 3.08% yield. Due to the recent decline in short-term interest rates, KOFR (Korea Overnight Financing Rate) and 91-day CD rates are currently formed at around 2.7~2.8%.

The SOL Medium-Short-Term Corporate Bond (A- or higher) Active ETF selectively invests in credit bonds such as corporate bonds and other financial bonds with a remaining maturity of within 3 years. It is a short-term fund parking-type ETF that seeks excess returns compared to market interest rates by maximizing capital gains from interest rate fluctuations through duration management of about 1 year and 6 months. With expectations of interest rate cuts creating a favorable environment for bond investment, it is possible to pursue stable interest income and capital gains from falling interest rates through investment in high-quality corporate bonds.

The SOL CD Rate & Money Market Active ETF utilizes CDs (certificates of deposit) and short-term bonds as its main assets and pursues top-tier performance among domestically listed CD rate ETFs by selectively incorporating short-term credit bonds through an active strategy.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "The recent volatility in the global financial markets is difficult to predict and is significantly affecting asset classes that were previously considered safe assets, such as long-term bonds and gold," advising, "It is necessary to consider parking-type ETFs as a short-term refuge." He added, "The SOL

parking-type ETF series has the advantage of allowing selective investment according to investment style and purpose, based on excellent performance competitiveness, balancing short-term fund parking, interest income, and capital gains, as well as receiving monthly dividends."

Since the SOL parking-type ETF series is classified as a safe asset, it is possible to invest 100% of accumulated funds in retirement pension (DC/IRP) accounts. It is also highly useful in ISA (Individual Savings Account), which offers tax benefits.