SOL US S&P500 US Treasury Mixed 50 ETF Newly Listed

Shinhan Asset Management will list the 'SOL US S&P500 US Treasury Mixed 50' ETF on July 15.

The company is strengthening its lineup of asset allocation products. Along with the existing 'SOL US Dividend US Treasury Mixed 50' ETF, this new product is a monthly dividend ETF that pays out distributions in the middle of each month. It allows investors to allocate up to 100% of their contributions from retirement pension (DC/IRP) accounts.

The SOL US S&P500 US Treasury Mixed 50 ETF is designed to invest 50% each in the US benchmark index S&P500 and 10-year US Treasury bonds. It provides diversified exposure to the long-term growth potential of the S&P500 as well as to US long-term Treasuries, which are considered relatively safe assets. This diversification aims to reduce portfolio volatility and help defend returns during market downturns.

As the US enters a rate-cutting cycle, the ETF is structured to pursue both capital gains from rising bond prices and dividend income, making it advantageous for long-term investors such as those with pension accounts.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, stated, "Long-term bonds are more sensitive to interest rate changes than short-term bonds, so they can serve as effective defensive assets during economic slowdowns or Federal Reserve rate-cutting cycles." He added, "The SOL US S&P500 US Treasury Mixed 50 ETF is optimized for pension investment, as it enables diversification across the US benchmark index, US long-term Treasuries, and dollar assets all in a single investment."

Kim further advised, "If a retirement pension portfolio is managed with a 70% allocation to representative index ETFs such as the SOL US S&P500 ETF and a 30% allocation to the SOL US S&P500 US Treasury Mixed 50 ETF, the proportion of US equities in a retirement pension account can be increased to as much as 85%."

He added, "Depending on investment preferences and objectives, investors can maximize their equity exposure and receive monthly dividends through various product combinations. Therefore, it is important to actively utilize tax-advantaged accounts such as ISAs, pension savings, and retirement pensions."

Shinhan Asset Management continues to expand investor options through the strategic expansion of its monthly dividend ETF series. The SOL US Dividend US Treasury Mixed 50 ETF, which was listed in September last year, surpassed KRW 280 billion in net assets within 10 months of its launch. Recently, products such as the 'SOL Palantir Covered Call OTM Bond Mixed' and 'SOL Palantir US Treasury Covered Call Mixed,' which apply a covered call strategy to Palantir as the underlying asset, have attracted strong investor interest by offering industry-leading distributions.

The SOL US S&P500 US Treasury Mixed 50 ETF, like existing SOL monthly dividend ETFs, will maximize the use of distribution resources and pay its first monthly dividend on September 15.