Shinhan Asset Management's 'SOL Ultra-Short-Term Bond Active' Surpasses 300 Billion KRW in Net Assets

Shinhan Asset Management announced on the 27th that the net assets of the ‘SOL Ultra-Short-Term Bond Active Exchange-Traded Fund (ETF)’ have surpassed 300 billion KRW. Approximately 100 billion KRW of funds flowed in within about a month after exceeding 200 billion KRW in net assets, rapidly expanding its scale.

The ‘SOL Ultra-Short-Term Bond Active ETF’ is composed of a portfolio mainly consisting of high-quality short-term financial products such as ultra-short-term bonds with a remaining maturity of within 3 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 by securing additional interest income through discovering undervalued high-quality securities.

Through such active management, a portfolio yield of 4.08% per annum is expected, which is relatively superior compared to CD 1-year rate (3.65%), CD 91-day rate (3.65%), KOFR rate (3.49%), new-type MMF (3.87%), and fixed deposits (2.58%).

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 one of the top maturity expected yields (YTM) among domestic parking-type ETFs."

Unlike most parking-type ETFs that track KOFR (risk-free benchmark 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. It has the advantage of allowing 100% investment of accumulated funds in retirement pension (DC, IRP) accounts. Since it operates with a structure where interest accumulates daily, it is highly useful not only for pension accounts but also for ISA (Individual Savings Account), where tax support expansion is anticipated.

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