Samsung Asset Management, KODEX REITs ETF Series 3 Types Reach 100 Billion KRW in Net Assets

Samsung Asset Management announced on the 11th that the net assets of the three KODEX Real Estate REITs ETF series have surpassed 100 billion KRW.

Samsung Asset Management has listed monthly dividend products investing in real estate REITs in Korea, the United States, and Japan, namely KODEX Korea Real Estate REITs Infrastructure, KODEX US Real Estate REITs (H), and KODEX Japan Real Estate REITs (H). Since its listing in March, KODEX Korea Real Estate REITs Infrastructure has recorded a net purchase of 44 billion KRW by individual investors within about four months, reflecting strong interest from retail investors.

The three KODEX Real Estate REITs ETF series each hold real estate REITs listed in Korea, the US, and Japan, respectively. Each country’s REITs have distinct characteristics based on their unique market traits. In Korea and Japan, due to factors such as metropolitan concentration, the REITs mainly consist of A-grade prime offices centered in Seoul and Tokyo. These REITs tend to assign high value to well-located real estate assets, showing relatively resilient performance even during periods of rising interest rates.

In the case of the US, with its vast land area, the key investment factor is how efficiently the REITs manage their financing costs rather than the importance of location. The REITs own various types of properties ranging from retail stores to pharmacies and restaurants, making capital procurement for real estate acquisition a major driver of corporate performance.

Due to these differing characteristics, during the current high interest rate environment, Japanese and Korean real estate REITs are showing relatively stable performance, while US REITs are expected to perform better during periods of interest rate cuts. Each real estate REITs ETF series offers different dividend yields. KODEX Korea Real Estate REITs Infrastructure and KODEX Japan Real Estate REITs (H) target an annual yield of about 8%, while KODEX US Real Estate REITs (H) aims for approximately 4% annually. The dividend yield of KODEX Japan Real Estate REITs (H) includes a premium from currency hedge benefits in addition to income generated from investment assets.

The three KODEX Real Estate REITs ETFs can benefit from a separate tax rate of 9.9% on dividend income up to 50 million KRW of investment capital when investors apply through securities firms under government policy. This provides an advantage for investors with annual financial income exceeding 20 million KRW by helping them avoid comprehensive financial income taxation.

Ma Seung-hyun, a manager at Samsung Asset Management, explained, "The REITs ETF market has been trading at discounted prices compared to the real estate value due to uncertainties caused by delayed interest rate cuts." He added, "For investors who believe the timing of interest rate cuts is approaching, these ETFs offer a good investment option with stable monthly dividends and tax benefits."

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