On May 27, KB Asset Management launched the 'KB RISE US High Dividend ETF Moa Dream' fund.
The KB RISE US High Dividend ETF Moa Dream fund is an ETF Managed Portfolio (EMP) fund that invests more than 50% of its assets in exchange-traded funds (ETFs). It features ultra-diversified investments and allows for efficient investing by utilizing low-fee ETFs.
The main investment targets are leading US dividend stock ETFs and high income ETFs. Notably, the fund incorporates the investment strategy of the well-known US dividend ETF 'SCHD (Schwab U.S. Dividend Equity),' which is also familiar to domestic investors.
The KB RISE US High Dividend ETF Moa Dream fund invests approximately 80% in US high dividend indices representing US dividend stocks, aiming to achieve both long-term capital appreciation and dividend income. It diversifies across various US high dividend indices with different characteristics, such as the 'Dow Jones US Dividend' index focusing on mid- to short-term growth, the 'S&P Dividend Aristocrats' index focusing on large-cap stocks, and the 'S&P Dividend Kings' index focusing on value stocks.
The remaining 20% is invested in covered call ETF products to generate alpha returns and maximize synergy with US dividend stocks. For these high income covered call ETFs, the fund selects products suitable for long-term investment by considering participation rates and annual distribution rates. It invests in products that share more than 50% of the upside when stocks rise and have an annual distribution rate exceeding 10%.
Investors interested in US dividend stock products can pursue stable dividend income and alpha returns by investing in this fund. It is particularly suitable for pension investors seeking stable returns.
US dividend stocks, known for their high dividend yields, have the advantage of being able to partially defend returns even when the market declines. Reviewing data over the six-year period since 2018, the dividend stock index achieved an average monthly excess return of more than 2% compared to the S&P 500 index during market downturns.
Although the KB RISE US High Dividend ETF Moa Dream fund invests overseas, it offers the same redemption cycle (T+3) as domestic equity funds, demonstrating strong liquidity.
Yook Donghui, Head of Pension WM Division at KB Asset Management, stated, "The KB RISE US High Dividend ETF Moa Dream fund seeks long-term stability through high dividend yields and also provides excellent compounding effects through dividend reinvestment." He added, "For investors interested in a Korean-style SCHD, this fund can be included in a pension account to pursue stable dividend income over the long term."
The KB RISE US High Dividend ETF Moa Dream fund is available for subscription at KB Kookmin Bank and KB Securities.
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