As investor interest in high-dividend stocks continues to grow, KB Asset Management's 'RISE Korea Financial High Dividend ETF' is drawing attention for delivering the best performance among similar products.
According to fund evaluation firm FnGuide on July 1, the one-month, three-month, and six-month returns of the 'RISE Korea Financial High Dividend ETF' were 16.35%, 34.53%, and 45.01%, respectively. This ranks first among 18 domestic high-dividend stock ETFs during the same period.
As investment products focused on high-dividend stocks gain attention, related ETFs are being listed one after another. Focusing only on stocks with high dividend yields may help generate short-term returns, but long-term performance can be limited. It is important to choose products that pursue both stable income and stock price appreciation.
The RISE Korea Financial High Dividend ETF has delivered differentiated results by constructing a financial sector-focused portfolio that not only offers high dividends but also considers sustainable dividend capacity, capital efficiency, and the potential for corporate value improvement.
Using the 'iSelect Korea Financial High Dividend Index' as its underlying index, the ETF builds its portfolio based on four quantitative factors: return on equity (ROE), dividend yield, price-to-book ratio (PBR), and market capitalization. Its main investment targets are traditional high-dividend sectors such as financial holding companies, insurance, and banks.
The financial sector is regarded as a key sector where both stable dividends and fundamental improvement can be expected, amid structural changes such as declining interest rates, increased asset valuation gains, and improved capital adequacy.
As the government pursues measures to boost the domestic economy, such as easing consumption taxes and relaxing real estate regulations, the potential for improved earnings among financial companies based on domestic demand is gradually increasing. With more financial companies strengthening shareholder return policies such as dividend increases and share buybacks, the appeal of high-dividend stocks is also expected to grow further.
No Areum, Head of ETF Business Division at KB Asset Management, emphasized, "The RISE Korea Financial High Dividend ETF is a market-leading product not only in terms of high dividends but also in returns," and added, "We recommend it as a strategic product that can pursue both stable income and capital gains amid various market variables such as government policies, voluntary shareholder return enhancements by companies, and interest rate changes."
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