Hanwha Asset Management Changes 'ARIRANG Gobaedangju' Distribution Cycle to Monthly Distribution

Hanwha Asset Management announced on the 16th that it will change the distribution payment frequency of the 'ARIRANG High Dividend Stock' Exchange-Traded Fund (ETF) to a monthly distribution.

Hanwha Asset Management decided to change the distribution payment frequency of the 'ARIRANG High Dividend Stock' from the existing quarterly payments to monthly payments. The effective date is the 14th of this month. Investors holding the 'ARIRANG High Dividend Stock' ETF until the end of May are expected to receive monthly distributions starting in early June.

The change in distribution payment frequency was made to meet the needs of investors who want to secure cash liquidity through stable monthly dividend payments. Since the first launch of 'monthly dividend (monthly distribution) ETFs' in Korea in June 2022, the market size has grown significantly due to the advantage of generating stable monthly cash flow.

Even after switching to monthly distributions, 'ARIRANG High Dividend Stock' plans to pay dividends at a level similar to the previous quarterly distributions, around 5-6% (annualized dividend yield). This ETF recorded a distribution rate of 6.03% (730 KRW per share) in 2023, ranking first among domestic high dividend stock ETFs, and before the change to monthly distributions, it paid 5.17% (750 KRW per share) in April this year, maintaining an average dividend payout of 5.22% over the past five years.

Since its listing in August 2012, 'ARIRANG High Dividend Stock' is currently the largest domestic high dividend stock ETF with total net assets of 290.2 billion KRW (as of the closing price on the 10th). The ETF invests by selecting high dividend stocks ranked within the top 30 in expected dividend yield among the top 200 stocks by market capitalization. It is characterized by focusing on future expected dividend yields rather than past dividend yields, continuously adjusting its portfolio with stocks expected to pay high dividends each year.

Considering dividend reinvestment, the performance of 'ARIRANG High Dividend Stock' as of the 9th is 3.01% over the past month, 22.30% over six months, 26.23% over one year, 15.82% year-to-date, and 110.61% since listing, showing superior performance compared to the 'KOSPI 200'. Its holdings include Hana Financial Group (6.59%), KB Financial Group (5.79%), Kia (5.39%), Industrial Bank of Korea (5.36%), BNK Financial Group (4.98%), Woori Financial Group (4.94%), JB Financial Group (4.91%), Korea Gas Corporation (4.52%), Samsung Card (4.34%), and Shinhan Financial Group (4.17%).

Geum Jeong-seop, Head of ETF Business Division at Hanwha Asset Management, said, "ARIRANG High Dividend Stock is a leading domestic high dividend ETF with proven performance, paying high dividends for over 10 years. Reflecting the needs of investors who want stable monthly cash flow, we plan to provide liquidity by changing the distribution frequency to monthly."

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