SOL Financial Holding Plus High Dividend ETF Surpasses KRW 150 Billion in Net Assets

Shinhan Asset Management announced on July 10 that the net assets of the 'SOL Financial Holding Plus High Dividend' ETF have surpassed KRW 150 billion. Just two weeks after exceeding KRW 100 billion last month, an additional KRW 50 billion has flowed in. Since the beginning of the year, the increase amounts to approximately KRW 100 billion.

Since the launch of the new administration, expectations for shareholder returns have grown due to amendments to the Commercial Act and the push for separate taxation of dividend income. As a result, there has been a rapid inflow of funds, particularly from retail investors (KRW 26.6 billion) and bank clients (KRW 20 billion).

The SOL Financial Holding Plus High Dividend ETF is the only ETF in Korea that allows concentrated investment in the country’s leading financial holding companies. It consists of 10 stocks, including nine major financial holding companies?Shinhan Financial Group, KB Financial Group, Hana Financial Group, Woori Financial Group?and NH Investment & Securities. Since its listing in June last year, it has paid an average monthly dividend of KRW 52 per share. As of now, the annualized dividend yield stands at approximately 5.64%.

Among high-dividend ETFs, its relatively high return is also noteworthy. According to the Korea Exchange, the SOL Financial Holding Plus High Dividend ETF ranks first in returns in most periods among 54 ETFs classified as high-dividend both domestically and internationally. Its performance over the past 1 month, 3 months, 6 months, and year-to-date is 21.28%, 64.9%, 57.95%, and 60.4%, respectively.

This is linked to the strong stock performance of its major holdings: Shinhan Financial Group (up 49.21%), KB Financial Group (up 47.17%), Hana Financial Group (up 66.37%), and Woori Financial Group (up 65.26%). Shinhan Financial Group and Woori Financial Group each hit record highs for the first time in 18 years. Hana Financial Group reached its highest price in 20 years since listing. KB Financial Group surpassed Hyundai Motor Company to become the fifth largest by market capitalization in the Korean stock market, drawing attention.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, explained, "In line with the government's push for the separate taxation of dividend income, financial holding companies are announcing concrete shareholder return plans, such as expanding dividends from subsidiaries and canceling treasury shares." He added, "The financial sector is highly sensitive to policy changes, so it can be the most direct beneficiary of institutional changes."

Kim also emphasized, "The SOL Financial Holding Plus High Dividend ETF is the only product in Korea that allows for concentrated investment in financial holding companies. Through a differentiated composition from conventional bank stock ETFs or simple high-dividend ETFs, it offers dividends," adding, "It is a monthly dividend ETF that can deliver both increased shareholder value and capital gains."