KODEX Hanguk Real Estate REITs Infrastructure, Continuous Net Buying by Individuals This Year

Individual funds continue to flow into ETFs investing in real estate REITs and infrastructure that provide stable dividends. It is analyzed that personal investors' interest is increasing as they can expect the value appreciation of real estate and infrastructure assets amid the interest rate cut cycle, as well as enjoy the benefits of separate taxation.

Samsung Asset Management announced on the 17th that the cumulative net purchase amount by individuals in the KODEX Korea Real Estate REITs Infrastructure ETF has reached 76.7 billion KRW since the beginning of this year.

The KODEX Korea Real Estate REITs Infrastructure ETF is a monthly dividend-type ETF that diversifies investments in domestic infrastructure assets and listed REITs, showing stable dividend rates and returns, and has established itself as an alternative for diversified investment.

The KODEX Korea Real Estate REITs Infrastructure ETF recorded a 6.4% return since the beginning of the year. Over the past year, the dividend rate has been about 9%, paying stable dividends of 433 KRW in total over 12 distributions. This is the highest dividend rate compared to other domestic REITs ETFs. Starting with a monthly dividend of 30 KRW per share in March last year, when it first paid monthly dividends, it has steadily increased to 39 KRW per share this month.

The KODEX Korea Real Estate REITs Infrastructure ETF is classified as a public real estate collective investment vehicle subject to the Special Tax Treatment Control Law, which applies a separate tax rate of 9.9% on dividend income up to 50 million KRW. This is a significant advantage for high-net-worth individuals concerned about comprehensive financial income taxation or pension account investors. It appears to have attracted funds from individual investors interested in tax planning.

Expectations for the REITs industry as a whole are also growing. As expectations spread that the Bank of Korea will gradually lower the base interest rate in the future, anticipation of asset value appreciation and interest cost reduction effects of REITs is stimulating investment sentiment. The KODEX Korea Real Estate REITs Infrastructure ETF focuses on major REITs and infrastructure assets such as Macquarie Infrastructure, SK REITs, and ESR Kendall Square REITs. It is expected to benefit relatively more from interest rate changes.

It is also analyzed that the fact that more than 25% of the total asset portfolio is invested in Macquarie Infrastructure, which has shown excellent performance over a long period among real estate and infrastructure assets, has attracted buying interest from individual investors. In the case of the KODEX Korea Real Estate REITs Infrastructure ETF investing in real estate REITs, capital gains from the value appreciation of held assets can also be expected during periods of interest rate cuts.

Ma Seung-hyun, a manager at Samsung Asset Management, said, "The KODEX Korea Real Estate REITs Infrastructure ETF is a product that provides monthly dividends while also allowing investors to enjoy separate taxation benefits," adding, "The inflow of investors not only from general accounts but also from pension accounts is steadily increasing." He added, "It will be a useful portfolio tool for investors who want to efficiently invest in real estate REITs and infrastructure assets."