Korea's First Monthly Dividend ETF 'SOL Miguk S&P500', First Dividend 11 Won Per Share

[Asia Economy Reporter Junho Hwang] Shinhan Asset Management's 'SOL US S&P500,' the first monthly dividend ETF in Korea, has paid its first monthly distribution.

Shinhan Asset Management will pay a distribution of 11 KRW per share on the 1st to investors who purchased and held the SOL US S&P500 ETF by the day before the ex-dividend date, which was the 27th.

The time of distribution deposit may vary depending on the securities firm's policy. Going forward, investors can receive monthly distributions on a similar schedule each month.

Kim Jeonghyun, head of the ETF Management Center at Shinhan Asset Management, explained, "This distribution period was relatively limited in available funds since it was not during the usual dividend season of U.S. companies. While adhering to the principle of monthly distributions, higher distributions may be paid during the dividend season."

The SOL US S&P500 ETF has attracted significant interest from individual investors since its listing despite challenging market conditions. Among ETFs listed this year, it ranks among the top in net purchases by individual investors during July.

Kim said, "As the stock market has entered a full-fledged bear market phase, ETF investment sentiment has sharply contracted. In the first half of the year, individual investors showed more interest in representative domestic and international index products like the S&P500, short-term bond products, and derivative products such as leveraged/inverse ETFs rather than thematic products."

By the end of July last year, 47 new products were listed in the domestic ETF market, with individual investors net purchasing a total of 1.109 trillion KRW in these products. In contrast, this year, individual investors net purchased only 208.3 billion KRW in 65 newly listed products by the end of last month.

Kim added, "Continuous net purchases by individual investors since listing are encouraging considering the recent market situation. Having confirmed domestic investors' demand for monthly dividend products, we are also considering adding more monthly dividend lineup in the future."

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