SOL Financial Holding Plus High Dividend ETF Surpasses 100 Billion KRW in Net Assets

Shinhan Asset Management announced on June 25 that the net asset value of the 'SOL Financial Holding Plus High Dividend' ETF has surpassed 100 billion KRW.

Since the launch of the new administration, retail demand from individual investors and bank clients has increased, resulting in an inflow of approximately 40 billion KRW over the past month. Individual investors made net purchases of about 17 billion KRW, while bank clients purchased around 15 billion KRW.

The main holdings, including ▲KB Financial Group (up 35.46%), ▲Shinhan Financial Group (28.02%), ▲Hana Financial Group (44.89%), and ▲Woori Financial Group (44.44%), have all seen significant gains this year, contributing to the strong performance of the SOL Financial Holding Plus High Dividend ETF. The returns for the past 1 month, 3 months, 6 months, and year-to-date were 17.85%, 32.86%, 40.23%, and 43.71%, respectively. Since its listing, the cumulative return has reached 54.71%.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, stated, "With the prompt passage of the Commercial Act amendment imminent, financial holding companies are not only direct beneficiaries of the new system but are also at the center of economic stimulus and dividend expansion trends." He added, "As shareholder return policies such as quarterly dividends and share buybacks and cancellations are implemented step by step, financial holding companies will be re-evaluated as sustainable high-dividend stocks."

Multiple positive factors?including stronger shareholder returns, stable capital ratios, expansion of non-interest income, and changes in policy environment?are rapidly enhancing the investment appeal of financial holding companies. Quarterly dividend increases and share buybacks and cancellations are leading to tangible improvements in earnings per share (EPS). Most holding companies have exceeded their Common Equity Tier 1 (CET1) capital ratio targets, securing additional capacity for dividends and a foundation for growth.

The government's push to amend the Commercial Act and its policy focus on revitalizing financial investment are also improving expectations for better governance and increased foreign capital inflows, creating a favorable environment for the re-rating of the financial holding sector as a whole. These structural changes are key factors driving the re-evaluation of financial holding companies from short-term high-dividend stocks to undervalued blue-chip stocks with mid- to long-term growth potential.

Kim further analyzed, "Finance is a policy-sensitive industry, and if the new administration implements deregulation and expands autonomy, it could serve as a key catalyst for improved profitability and value re-rating." He emphasized, "The SOL Financial Holding Plus High Dividend ETF is the only product in Korea that allows investors to focus exclusively on financial holding companies. Its differentiated structure, compared to conventional bank ETFs or simple high-dividend ETFs, offers not only dividend income but also the potential for shareholder value appreciation and capital gains."

The 'SOL Financial Holding Plus High Dividend' ETF is composed of 10 stocks, including nine leading domestic financial holding companies such as Shinhan Financial Group, KB Financial Group, Hana Financial Group, and Woori Financial Group, as well as NH Investment & Securities, allowing for concentrated investment in financial holding companies. Since its listing in June last year, it has distributed an average of 51 KRW per share each month. The annualized dividend yield stands at approximately 5.66%.