Hanwha Asset Management's 'ARIRANG High Dividend Stocks' Net Assets Surpass 300 Billion KRW... "Benefiting from Value-Up Policy"

Hanwha Asset Management announced on the 6th that the net asset value of the 'ARIRANG High Dividend Stock' Exchange-Traded Fund (ETF) has surpassed 300 billion KRW.

According to Hanwha Asset Management, from the end of last year to February 2, the net asset value of the 'ARIRANG High Dividend Stock' ETF increased by approximately 120 billion KRW, reaching 328.2 billion KRW. In just over a month, the net asset value grew by about 31%, indicating a significant inflow of funds into this ETF since the beginning of the year. The ETF's stock price also showed an upward trend, rising 12.12% compared to the end of last year and about 13.77% in the past week, hitting a 52-week high.

The background of this upward trend is interpreted to be influenced by the government's recent plan to introduce a 'Corporate Value-Up Program' aimed at resolving the 'Korea Discount.' The core elements of this program are expected to include ▲mandatory comparative disclosure of key investment indicators of listed companies such as Price-to-Book Ratio (PBR) and Return on Equity (ROE) ▲recommendations for announcing corporate value improvement plans ▲introduction of ETFs composed of companies excelling in corporate value improvement.

As a result, investor interest has focused on sectors traditionally considered undervalued, such as finance, energy, and utilities, benefiting the 'ARIRANG High Dividend Stock' ETF, which holds many stocks in these sectors, according to Hanwha Asset Management.

The composition of the 'ARIRANG High Dividend Stock' ETF is dominated by the financial sector, accounting for about 62.58%. In addition to financial stocks, the top 10 holdings include 'Kia,' which recently announced dividend increases and share buybacks, and 'Korea Gas Corporation,' a representative 'low PBR' utility company.

This ETF is managed by selecting the top 30 stocks with the highest expected dividend yields among the top 200 stocks by free float market capitalization. Major holdings include ▲Hana Financial Group ▲Kia ▲Industrial Bank of Korea ▲Woori Financial Group ▲KB Financial Group ▲Korea Gas Corporation ▲Samsung Card. The total expense ratio is 0.23%.

Since the ‘ARIRANG High Dividend Stock’ ETF has paid high dividends for over 10 years with proven stability, it is suitable for long-term investment, such as investing the money received as New Year's gifts during the upcoming Lunar New Year holiday. As the largest dividend ETF in Korea, 'ARIRANG High Dividend Stock' recorded some of the highest domestic distribution rates annually: 6.03% in 2023, 5.51% in 2022, and 4.81% in 2021.

Yoon Joon-gil, head of the ETF Management Team at Hanwha Asset Management, said, “Since last year, major domestic companies have announced shareholder return policies and shown active dividend tendencies. If the government’s Corporate Value-Up Program takes root in the market, the attractiveness of the ARIRANG High Dividend Stock ETF will increase.” He added, “Since its listing in 2012, the ARIRANG High Dividend Stock ETF has paid stable dividends annually, and considering dividend reinvestment, its performance since listing is about 98%, making it an effective product for long-term investment.”

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