KIWOOM High Dividend ETF Shows Strong Performance Amid High Dividend ETF Rally

Kiwoom Asset Management announced on June 19 that the 'KIWOOM High Dividend Exchange-Traded Fund (ETF)' has recorded the best performance in major return segments among domestic equity-based high dividend ETFs.

Launched in July 2008, the KIWOOM High Dividend ETF is the first high dividend ETF in Korea and the longest-running high dividend ETF, having been managed for 17 years. It has demonstrated stable performance across all periods, from short-term to long-term.

According to financial information provider FnGuide, as of June 18, the year-to-date return of the KIWOOM High Dividend ETF was 31.99%. The returns for the most recent three months and six months were 25.7% and 29.0%, respectively.

The KIWOOM High Dividend ETF tracks the 'MKF Wealth High Dividend 20 Index' and invests in the top 20 stocks by dividend yield among those that have posted profits and paid dividends for four consecutive years. This allows for selective investment in companies whose dividend sustainability and cash flow stability have been verified.

With a high proportion of financial sector stocks, the ETF aligns with the current trend of high dividend ETFs focused on financial stocks, which are drawing attention amid rising expectations for shareholder returns and momentum from amendments to the Commercial Act. In fact, financial stocks such as banks, insurance, and securities, which are classified as high dividend sectors, account for about 60% of the total portfolio, allowing investors to expect both dividend stability and potential policy benefits.

The annualized distribution rate for the past 12 months is approximately 5.31%, with stable monthly distributions being paid. It is considered an attractive option for investors seeking both dividend income and capital gains.

A representative from Kiwoom Asset Management stated, "Expectations for increased dividends and enhanced corporate value are growing across the domestic stock market," adding, "The KIWOOM High Dividend ETF, as the first high dividend ETF in Korea, has built trust based on steady management performance and a stable distribution track record over the past 17 years since its listing."

The representative continued, "Recently, we have continued to deliver excellent results based on a sophisticated index strategy," and added, "It could be an effective alternative for retail investors interested in high dividend stocks or for those managing retirement pension accounts."