Shinhan Asset Management's 'SOL Ultra-Short-Term Bond Active'..."Net Assets Surpass 200 Billion Won"

Shinhan Asset Management announced on the 21st that the net assets of the ‘SOL Ultra-Short-Term Bond Active Exchange-Traded Fund (ETF)’ surpassed 200 billion KRW within three months of its listing.

The ‘SOL Ultra-Short-Term Bond Active ETF’ is composed of a portfolio primarily consisting of high-quality short-term financial products such as ultra-short-term bonds with a remaining maturity of less than three months (credit rating A- or higher) and commercial paper (A2- rating or higher). It is managed stably by reducing volatility caused by interest rate fluctuations and seeks excess returns through additional interest income by discovering undervalued high-quality securities.

Through such active management, the portfolio is expected to yield a relatively superior annual return of 4.24%, compared to CD 1-year rate (3.67%), CD 91-day rate (3.70%), KOFR rate (3.71%), new-type MMF (3.92%), and fixed deposits (2.6%).

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “Since its listing, the SOL Ultra-Short-Term Bond Active ETF has consistently maintained the highest level of maturity yield to maturity (YTM) among domestic parking-type ETFs, leading to a growing number of purchases mainly from individual investors and bank customers. For stable management of market standby funds such as surplus funds and short-term liquidity funds, it is necessary to actively utilize the SOL Ultra-Short-Term Bond Active ETF, which offers a better expected yield (YTM) compared to market interest rate ETFs and fixed deposits.”

As demand for cash parking from investors increases, the speed of net asset growth is also accelerating. After surpassing 100 billion KRW within two months of listing in January, the net assets increased by another 100 billion KRW in about a month.

Meanwhile, unlike most parking-type ETFs that track KOFR (risk-free benchmark interest rate) or CD (certificates of deposit) rates and are classified as risky assets, the SOL Ultra-Short-Term Bond Active ETF is classified as a safe asset, allowing 100% investment of accumulated funds in retirement pension (DC/IRP) accounts.

Kim added, “With a structure where interest accumulates daily, this product is highly useful not only for pension accounts but also for ISA (Individual Savings Account), where tax benefits are expected to expand.”

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