Korea Investment Management ACE High Dividend Stock ETF Surpasses 70 Billion Won in Net Assets

NAV increases by 20 billion won in just one month
Managed with consideration of ex-dividend recovery rate

Korea Investment Management announced on March 3 that the net asset value (NAV) of the ACE High Dividend Stock Exchange-Traded Fund (ETF) has surpassed 70 billion won.

According to the Korea Exchange, as of the previous trading day (February 27), the NAV of the ACE High Dividend Stock ETF stood at 72.3 billion won. This means that the NAV has increased by more than 20 billion won in just one month since it reached 50 billion won in early February.

The ACE High Dividend Stock ETF is a product that includes 20 high dividend stocks, taking into account not only dividend yield but also the rate of recovery after ex-dividend dates. Its underlying index is the “KRX-Akros High Dividend 20 Index,” which is characterized by comprehensively considering not only market representation and liquidity, but also dividend yield, payout ratio, and profitability (ROE).

The ex-dividend recovery rate is an indicator that quantifies how quickly a stock price returns to its original level after going ex-dividend. Korea Investment Management employs a strategy that takes this metric into account in addition to the dividend yield, aiming to select companies whose stock prices remain stable and recover quickly after dividends are paid.

This strategy of excluding stocks with low ex-dividend recovery rates has also translated into results. The year-to-date return of the ACE High Dividend Stock ETF is 37.89%, outperforming the average return of 28.32% among the 31 “high dividend” keyword ETFs listed in Korea.

There has also been a steady inflow of funds. Since the beginning of the year, net purchases by individual investors in the ACE High Dividend Stock ETF have reached 15.1 billion won. Notably, in February, individual investors continued to buy the ETF on all but two trading days. Cumulative net purchases by individual investors since listing now total 29.6 billion won.

Nam Yongsoo, Head of ETF Management at Korea Investment Management, stated, “High dividend ETFs should not only focus on the size of the dividends but also verify the sources of those dividends. If a company pays excessive dividends compared to its fundamentals, it can negatively affect long-term returns. Therefore, we also consider the ex-dividend recovery rate when constructing the ACE High Dividend Stock ETF portfolio.”

This content was produced with the assistance of AI translation services.