KB Asset Management Highlights RISE Korea Financial High Dividend ETF

Recently, as domestic financial companies have improved their capital soundness and expanded dividends, investor interest in high-dividend financial stock exchange-traded funds (ETFs) has been growing.

On June 13, KB Asset Management announced that the 'RISE Korea Financial High Dividend ETF' recorded returns of 17.41% and 28.07% over the past one month and three months, respectively.

The RISE Korea Financial High Dividend ETF tracks the 'iSelect Korea Financial High Dividend Index' as its benchmark. It selects companies in the financial holding, banking, securities, and insurance sectors based on return on equity (ROE), dividend yield, price-to-book ratio (PBR), and market capitalization, investing in a total of 13 top-ranked stocks. Companies with a dividend yield lower than the average of KOSPI-listed stocks are excluded from the final portfolio. Since it focuses solely on high-dividend stocks within the securities, insurance, and banking sectors, the ETF is expected to provide stable dividend income as well as strong mid- to long-term returns.

The main investment stocks include Kiwoom Securities (11.02%), Shin Young Securities (10.58%), DB Insurance (10.23%), Samsung Securities (10.09%), and NH Investment & Securities (9.82%).

As the mandatory disclosure of dividend payout ratios, strengthened shareholder returns, and efforts to join the MSCI Developed Markets Index are expected to accelerate improvements in the capital market, the investment value of the RISE Korea Financial High Dividend ETF is projected to increase further.

No Areum, Head of ETF Business Division at KB Asset Management, stated, "The RISE Korea Financial High Dividend ETF builds a balanced portfolio of financial holding companies, banks, securities, and insurance firms that can benefit from the Value-Up Program." She added, "It is designed to maximize dividend payouts compared to existing high-dividend ETFs. As the government-led 'Corporate Value Enhancement Policy' gains momentum, we expect growing demand for ETFs that can benefit from expanded shareholder returns and the resolution of undervaluation issues."