Timefolio to List 'Korean Version of SCHD' ETF with Active Strategy on April 29

Timefolio Asset Management announced on April 23 that it will list the country's only active ETF with a monthly dividend payout, the 'TIMEFOLIO US Dividend Dow Jones Active ETF,' on April 29.

The ETF is managed based on the same benchmark index as SCHD (Schwab U.S. Dividend Equity ETF), a leading US dividend ETF. By adding Timefolio's active management strategy, it aims to achieve both higher distributions and capital gains compared to the existing SCHD.

While previous 'Korean versions of SCHD' ETFs have all been passive structures that directly track the index, the Timefolio ETF is designed as the only active structure in Korea that can flexibly adjust its holdings and weightings according to market conditions.

The 'monthly dividend' structure, which pays distributions on the 15th of every month (business day basis), is another key differentiator. When held together with the 'TIMEFOLIO Korea Plus Dividend Active ETF,' which pays dividends at the end of each month, investors can construct a portfolio that receives dividends twice a month.

The target annual dividend yield is around 6%, which is higher than the mid-3% annual yield of existing passive ETFs based on the same index. For an investment of 10 million won, this ETF charges an annual fee of 0.8%, which is 79,000 won more than the domestically listed passive SCHD (annual fee of 0.01%). However, with a high dividend yield of 6%, investors can earn an additional 250,000 won in income compared to the average passive dividend yield of 3.5%. As a result, even after accounting for the fee difference, the annual net profit of the active ETF is 171,000 won higher. This is thanks to the active management strategy that adjusts investment strategies according to market conditions, rather than simply differing in stock composition.

Kim Namho, a manager at Timefolio Asset Management, advised, "For investors who care about actual performance, a simple low-fee ETF is not always the best choice," adding, "You should choose the ETF with the highest total return."

He continued, "The TIMEFOLIO US Dividend Dow Jones Active ETF is the only active monthly dividend ETF in Korea that can flexibly respond to market changes while offering a high dividend yield," and added, "In true Timefolio fashion, we will select stocks based on thorough research to pursue both stability and profitability."