Shinhan Asset Management's 'SOL Ultra-Short-Term Bond Active' Tops Maturity Expected Yield Parking-Type ETFs
The maturity yield to maturity (YTM) of Shinhan Asset Management's SOL Ultra-Short-Term Bond Active Exchange-Traded Fund (ETF) recorded 4.2%, making it the best among major parking-type ETFs.
According to Shinhan Asset Management on the 5th, the 'SOL Ultra-Short-Term Bond Active ETF' is managed stably by constructing a portfolio mainly consisting of high-quality short-term financial products such as ultra-short-term bonds with a remaining maturity of less than 3 months (credit rating A- or higher) and commercial paper (A2- rating or higher), reducing volatility caused by interest rate fluctuations. It is a product that seeks excess returns by securing additional interest income through discovering undervalued high-quality stocks.
The result of active management is reflected in a relatively high YTM. Compared to the 1-year CD rate (3.68%), 91-day CD rate (3.69%), KOFR rate (3.61%), new-type MMF (3.91%), and time deposits (2.63%), a relatively superior portfolio yield of 4.2% per annum is expected.
Kim Jeong-hyun, head of the ETF Business Division at Shinhan Asset Management, said, "In a volatile market, short-term fund parking demand continues mainly among individual investors and bank customers. In situations of increased uncertainty in the domestic and international economy and increased stock market volatility, stable management of standby funds such as surplus funds and short-term liquidity funds is important. It seems that investors are paying attention to the YTM of the SOL Ultra-Short-Term Bond Active ETF, which is superior to market interest rate ETFs and time deposits."
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Supported by such buying demand from individual investors, the net assets of the SOL Ultra-Short-Term Bond Active ETF increased to 140 billion KRW within two months of listing. Unlike most parking-type ETFs that track KOFR (risk-free benchmark rate) and CD (certificates of deposit) rates and are classified as risky assets, it is classified as a safe asset, allowing 100% investment of accumulated funds in retirement pension (DC/IRP) accounts, attracting high interest from pension investors.
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