‘SOL US Dividend Dow Jones’ Rises to No.1 in Domestic Dividend ETF Net Assets

More than 130 Billion KRW Inflow Including Pension Accounts This Year
The Vanguard of Changing Investment Trends in Domestic Dividend ETFs

The ‘SOL US Dividend Dow Jones ETF’ has surpassed 100 billion KRW in net purchases by individual investors since the beginning of the year, rising to become the number one dividend ETF in net assets.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, stated, “Although individual investors’ funds have mainly flowed into inverse and bond-type ETFs since the beginning of the year, the inflow of funds into the equity-type ETF SOL US Dividend Dow Jones was outstanding.” He added, “While the investment trend of domestically listed dividend ETFs has been focused on pursuing the absolute size of dividends paid once a year, it has now evolved into a strategy that creates a steady cash flow through dividends along with consistent dividend growth.”

Thanks to the concentrated buying by individual investors, ‘SOL US Dividend Dow Jones’ has grown to 160 billion KRW in net assets, the largest scale among domestic dividend strategy ETFs, just six months after its listing.

Oh Hyung-seok, manager of the ETF management team in charge of operations, said, “Interest in dividend ETFs is high during periods of increased market volatility, but even products tracking the same index can show differences in dividends and performance depending on management capabilities, so selective investment is necessary.” He added, “SOL US Dividend Dow Jones strives to pursue performance as similar as possible to SCHD and makes efforts to pay reasonable monthly dividends by maximizing the use of dividend resources.”

Known as the Korean version of SCHD (Schwab US Dividend Equity ETF), SOL US Dividend Dow Jones maintains a stable dividend yield in the mid-3% range regardless of market conditions based on its underlying index, the Dow Jones US Dividend 100, and has recorded an average annual dividend growth rate of 14% over the past five years.

Manager Oh emphasized, “The first-quarter dividend yield of SOL US Dividend Dow Jones was 0.82%, the same as SCHD.” He added, “Since it is managed and pays dividends based on SCHD, it has established itself as an ETF preferred by existing SCHD investors.”

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