Funds Flock to Dividend Stock Funds Amid Volatile Market... Increased by 487.5 Billion KRW This Year

[Asia Economy Reporter Kwon Jaehee] As global interest rate hikes and recession concerns continue to create volatility in the stock market, funds are flowing into dividend stock funds that invest in stocks with high dividend payouts.

According to financial information provider FnGuide on the 18th, the total assets under management of 267 domestic dividend stock funds increased by 487.5 billion KRW since the beginning of this year.

As of the 16th, the total assets under management amounted to 8.9285 trillion KRW.

Looking at the assets under management by fund, Korea Investment Trust Management's 'Korea Investment US Dividend Aristocrats Securities Investment Trust H (Stock)' saw the largest inflow, increasing by 137.6 billion KRW this year.

Bearings Asset Management's 'Bearing High Dividend Plus Securities Investment Trust (Stock)' (79.4 billion KRW) and 'Bearing High Dividend Securities Investment Trust (Stock)' (40.8 billion KRW) also attracted significant funds.

Despite the stock market downturn, the average return of dividend stock funds since the beginning of the year is -12.02%, showing losses, but this performance is relatively better compared to the domestic equity funds' return of -21.44% during the same period.

Among funds with assets under management exceeding 10 billion KRW, the highest return since the beginning of the year was 'Hanwha Quarterly Dividend Energy Infrastructure MLP Special Asset Investment Company (Infrastructure - Fund of Funds) Type A' at 32.56%.

Following were 'Kiwoom KOSEF US Defensive Dividend Growth Nasdaq Securities Listed Index Investment Trust [Stock]' (13.80%), 'Korea Investment US Dividend Aristocrats Securities Investment Trust (USD) (Stock) A' (5.57%), and 'Korea Investment US Dividend Aristocrats Securities Investment Trust UH (Stock) (C-Re)' (5.21%).

As market uncertainty grows, interest is increasing in dividend stock funds that can provide relatively stable dividend income while delivering better performance compared to stocks.

Researcher Kim Jae-eun of NH Investment & Securities explained, "Companies that steadily increase dividends generally have strong pricing power, allowing them to maintain good performance by raising product prices even during periods of rising costs and expenses," adding, "In past inflationary environments, dividend growth stocks with high dividend growth rates outperformed the market in terms of price returns."

Researcher Kim analyzed, "The KOSPI dividend yield was only 1.8% last year, but it is expected to be 2.6% and 2.7% this year and next year, respectively," and stated, "We believe interest in dividend stock investment could be prolonged."

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