Hanwha Asset Management announced on January 16 that the net asset value of its 'PLUS High Dividend Equity-Bond Mixed' Exchange Traded Fund (ETF) has surpassed 400 billion won.
According to financial information provider FnGuide, as of January 14, the net asset value of the PLUS High Dividend Equity-Bond Mixed ETF stood at 400.6 billion won. This makes it the largest ETF among domestic bond-mixed ETFs investing in the Korean market.
The PLUS High Dividend Equity-Bond Mixed ETF allocates 50% to domestic high-dividend stocks and 50% to 3-year government bonds. On January 13, reflecting demand from investors seeking a higher proportion of equity investment, the allocation ratio between stocks and bonds was changed from the previous 40:60 to 50:50. The fund pays monthly distributions using stock dividends and bond interest as sources. Last year, it distributed 45 won per month, totaling 540 won for the year. Assuming an investor entered at the closing price of 12,270 won at the end of 2024 and held the ETF for about one year, the estimated pre-tax distribution yield would be approximately 4.4%.
Performance by period, based on the adjusted price assuming reinvestment of distributions, was 1.3% over the past month, 5.8% over three months, 2.1% over six months, and 22.1% over one year. Since its listing in August 2016, the cumulative return has been 73.8%.
The PLUS High Dividend Equity-Bond Mixed ETF grew rapidly last year. Its net asset value increased from 47.9 billion won at the beginning of the year to 386.3 billion won at the end of the year, representing approximately eightfold growth. Steady performance led to increased inflows.
Its high utility within pension accounts is also appealing. As a bond-mixed ETF, the PLUS High Dividend Equity-Bond Mixed ETF is classified as a safe asset and can be included as part of the mandatory 30% safe asset allocation in pension accounts. It is suitable for investors who wish to maximize the equity allocation within their pension accounts.
Recent regulatory improvements in the Korean stock market, such as the introduction of separate taxation on dividend income and revisions to the Commercial Act, are favorable for the PLUS High Dividend Equity-Bond Mixed ETF. Of the 30 stocks comprising the equity portion (50%), 22 are expected to meet the payout ratio conditions required for separate taxation on dividend income.
Kim Jeongseop, Head of ETF Business Division at Hanwha Asset Management, stated, "The high utility within retirement pension accounts has led to an increase in net assets," adding, "If investors allocate the mandatory 30% safe asset portion in their pension accounts to the PLUS High Dividend Equity-Bond Mixed ETF, it will help secure portfolio stability and diversify risk through asset class diversification."
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