Korea Investment Trust Management Launches KINDEX US High Dividend S&P ETF

[Asia Economy Reporter Junho Hwang] Korea Investment Trust Management announced on the 21st that the exchange-traded fund (ETF) 'KINDEX Miguk Gobaedang S&P ETF,' which invests in U.S. dividend growth stocks, has been listed on the Korea Exchange.

This product invests in U.S. high dividend stocks that consistently increase dividends per share over the long term based on solid earnings.

Among stocks listed on the New York Stock Exchange and NASDAQ, it selects the top 100 stocks (excluding REITs) that ▲have paid dividends consistently for at least 10 years, ▲have excellent fundamentals such as market capitalization, cash flow to debt ratio, and return on equity (ROE), and ▲have high annual dividend yield and 5-year dividend growth rate, and diversifies investments using a market capitalization-weighted method based on the 'Dow Jones U.S. Dividend 100 Price Return Index' as the underlying index.

As of the end of September, the sector composition of the underlying index includes Financials (22.4%), IT (20.69%), Consumer Staples (13.93%), Industrials (13.63%), Healthcare (12.16%), Consumer Discretionary (6.62%), Communication Services (5.09%), Materials (3.58%), and Energy (1.90%). By individual stocks, investment weights are high in semiconductor company Texas Instruments (4.19%), global IT technology and consulting group IBM (4.12%), global pharmaceutical company Merck & Company (4.10%), the largest U.S. building materials company Home Depot (4.07%), and the largest U.S. telecommunications company Verizon (4.05%).

'KINDEX Miguk Gobaedang S&P ETF' is a currency-exposed (UH) product. The daily performance reflects fluctuations in the USD to KRW exchange rate along with the performance of the underlying index.

Korea Investment Trust Management explains that this ETF is designed in the most suitable way for investing in a high dividend strategy. Companies with simply high dividend yields (= dividend/stock price) may have elevated dividend yields due to stock price declines or temporary dividend surprises caused by special corporate issues. 'KINDEX Miguk Gobaedang S&P ETF' avoids such 'traps' by comprehensively considering dividend yield along with company fundamentals, dividend continuity, and growth.

Jung Sung-in, head of the ETF Strategy Team at Korea Investment Trust Management, said, "As global market volatility is likely to increase in the second half of the year, interest in dividend growth stocks with strong earnings and stock price defense is growing. In the U.S., where shareholder-centricism is strong, dividend growth stocks that increase dividends based on quality earnings are worth considering for mid- to long-term investment with an eye on long-term stock price appreciation and dividend expansion."

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