Shinhan SOL US Dividend Dow Jones Series Net Assets Surpass 300 Billion Won

The net assets of SOL U.S. Dividend Dow Jones, Shinhan Asset Management's representative monthly dividend exchange-traded fund (ETF), have surpassed 300 billion KRW.

On the 27th, Shinhan Asset Management announced that the combined net assets of SOL U.S. Dividend Dow Jones, listed in November last year (251.5 billion KRW), and SOL U.S. Dividend Dow Jones (H), listed in March this year (56.5 billion KRW), have exceeded 300 billion KRW.

Having pioneered the monthly dividend ETF market by listing ‘SOL U.S. S&P 500’, the first monthly dividend ETF in the domestic ETF market in June last year, SOL ETF has established itself as a leading domestic monthly dividend ETF manager by consecutively hitting with ‘SOL U.S. Dividend Dow Jones’, which adds a monthly dividend strategy to the U.S. representative dividend growth ETF SCHD, and ‘SOL U.S. Dividend Dow Jones (H)’, the first domestic currency-hedged dividend ETF.

In particular, the Korean version of SCHD, ‘SOL U.S. Dividend Dow Jones’, has become a leading domestic monthly dividend ETF by continuously breaking records for net purchases by individual investors, increasing net assets from 8 billion KRW to 251.5 billion KRW in just six months.

From an operational perspective, it has been evaluated as living up to its reputation as the ‘Korean version of SCHD’. As of the end of June, the dividend yields for the second quarter and the first half of the year for SOL U.S. Dividend Dow Jones were 0.92% and 1.74%, respectively, identical to those of SCHD (Schwab U.S Dividend Equity ETF).

When investing in SOL U.S. Dividend Dow Jones through a pension account, investors could fully enjoy the dividend yield compared to SCHD, whose dividend yield decreases after deducting dividend income tax, thanks to the tax deferral effect.

Meanwhile, Shinhan Asset Management plans to lower the total expense ratio of ‘SOL U.S. Dividend Dow Jones’ from the current 0.03% per annum to an industry-low 0.01% per annum, coinciding with the milestone of the SOL U.S. Dividend Dow Jones series surpassing 300 billion KRW in net assets.

This reduction is expected to help maximize the long-term compound returns of investors in ‘SOL U.S. Dividend Dow Jones’, who mainly invest through pension accounts with a long-term investment nature. Additionally, it offers the advantage of increasing holdings without burden at a lower price compared to SCHD, which is priced around $75 per share.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “We will continue to maintain a dividend payment policy that matches the dividend yield as closely as possible to SCHD, while focusing more on investor-centered management, such as maintaining a favorable bid environment.”

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