PLUS High Dividend Stock Series Surpasses 1 Trillion Won in Net Assets

Hanwha Asset Management announced on June 2 that the combined net asset value of its 'PLUS High Dividend Stock' Exchange Traded Fund (ETF) series, consisting of four products, has surpassed 1 trillion won.

As global economic uncertainty increased due to the tariff war initiated by U.S. President Donald Trump, investments in high dividend stock ETFs, which offer the potential for stable dividend income, have grown. With expectations that value-up policies will gain momentum following the launch of the new government, interest in high dividend stock ETFs is projected to increase even further.

According to financial information provider FnGuide, the net asset values of the four ETFs are as follows: PLUS High Dividend Stock at 802.9 billion won, PLUS High Dividend Stock Bond Mix at 101.8 billion won, PLUS High Dividend Stock Covered Call at 87.7 billion won, and PLUS High Dividend Stock Fixed Covered Call at 17.7 billion won.

Known as the "Korean SCHD," the PLUS High Dividend Stock ETF is the largest domestic equity dividend ETF in Korea. Given the characteristics of high dividend stock ETFs, which are suitable for long-term and installment investing, scale is important. The larger the ETF, the more actively it is traded and the more stably it can be managed. The strengths of the PLUS High Dividend Stock ETF include predictable fixed income (a payout of 73 won per share every month) and steady growth in distributions (dividends).

Hanwha Asset Management has expanded its ETF lineup by launching: ▲PLUS High Dividend Stock Bond Mix, which allocates 40% to stocks and 60% to bonds, making it advantageous for pension account investments; ▲PLUS High Dividend Stock Weekly Covered Call, which seeks ultra-high dividends of around 18% annually by utilizing KOSPI200 options; and ▲PLUS High Dividend Stock Fixed Covered Call, which fixes the option portion to increase participation in stock price gains.

Interest in high dividend stock ETFs is expected to grow even further. The Korean stock market is currently significantly undervalued compared to major global markets. The 12-month forward price-to-book ratio (PBR) based on MSCI data is 4.4 times for the United States, 2.07 times for Europe, 1.36 times for Japan, and 1.32 times for China. In contrast, Korea's PBR is only 0.86 times.

To maximize returns from high dividend stock ETFs, long-term investing is necessary. The compounding effect can be maximized by reinvesting distributions. As of May 29, the time-weighted returns of the 'PLUS High Dividend Stock' ETF, assuming reinvestment of distributions, were 31.5% over the past year, 62.4% over three years, and 157.5% over five years.

Kim Jeongseop, head of Hanwha Asset Management's ETF Division, stated, "Although there are concerns about valuation pressures as high dividend stocks have surged in a short period, the PBR of PLUS High Dividend Stock is still only 0.8 times, compared to 3.2 times for SCHD, the representative U.S. dividend ETF." He added, "The PBRs of major domestic financial holding companies, which make up a core portion of the portfolio, remain in an absolutely undervalued range of 0.4 to 0.5 times. If the government fully implements policies to enhance shareholder value, the re-rating momentum for high dividend stocks will be further strengthened."