Shinhan Asset Management's SOL Monthly Dividend ETF Series Surpasses 750 Billion KRW in Net Assets

Shinhan Asset Management's ‘SOL Monthly Dividend Exchange-Traded Fund (ETF)’ series has surpassed 750 billion KRW in net assets. This achievement was made solely through newly listed products without adjusting the distribution cycle of existing products, with net assets increasing by nearly 200 billion KRW since the beginning of the year, accelerating the pace of capital inflow.

As of the 14th of this month, Shinhan Asset Management announced on the 15th that the total net assets of the four SOL Monthly Dividend series ETFs amounted to 753.7 billion KRW. This marks about 1 year and 9 months since the launch of Korea’s first monthly dividend ETF, SOL US S&P 500, in June 2022.

Along with steady buying of existing monthly dividend ETFs such as ‘SOL US S&P 500’, ‘SOL US Dividend Dow Jones’, and ‘SOL US Dividend Dow Jones (H)’, the ‘SOL US 30-Year Treasury Covered Call’ ETF, which was listed at the end of last year, also contributed by surpassing 80 billion KRW in net assets through capital inflows mainly from individual and pension investors.

The fourth monthly dividend product of the SOL ETF series, the ‘SOL US 30-Year Treasury Covered Call ETF’, is an ETF operated similarly to the iShares Treasury 20+ Year Treasury Bond Buywrite Strategy ETF, well known to domestic investors as TLTW. It invests in long-term US Treasury bonds using a covered call strategy, allowing investors to expect stable monthly dividend income. Since its listing, it has paid dividends twice, with dividend rates of 1.02% in January and 1.01% in February.

Although dividend rates may fluctuate depending on the option premium of the underlying assets, the product currently offers an expected monthly dividend rate of over 1%, or approximately 12% annually. As a monthly dividend ETF boasting a relatively attractive dividend yield, it is suitable for monthly dividend investors seeking to generate stable cash flow every month. It is classified as a safe asset that can be invested up to 100% of accumulated funds in tax-advantaged retirement pension accounts (DC/IRP), making it a product that can create the greatest synergy with pension accounts.

Kim Jeong-hyun, Head of the ETF Business Division, analyzed, "The monthly dividend ETF market, where nine companies operate more than 50 products, has grown to 5.5 trillion KRW, increasing by more than 1.7 trillion KRW since the beginning of the year. As ETFs invest in various underlying assets such as domestic stocks, overseas stocks, domestic bonds, overseas bonds, and REITs, and as operational strategies diversify, the monthly dividend ETF market is expected to continue growing steadily."

The SOL ETF plans to continuously strengthen its lineup by listing new monthly dividend ETFs utilizing various assets. Head Kim emphasized, "We fully understand the needs of investors currently investing in monthly dividend ETFs. As the ETF management company that introduced Korea’s first monthly dividend ETF, we plan to steadily expand the scale of the SOL ETF monthly dividend lineup with differentiated products that lead the industry."

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