Korea's First Monthly Dividend ETF 'SOL US S&P500' Surpasses 100 Billion KRW in Net Assets

Shinhan Asset Management announced on the 4th that the net assets of 'SOL US S&P500,' the first monthly dividend exchange-traded fund (ETF) in Korea, have exceeded 100 billion KRW.

The SOL US S&P500 ETF was designed with the concept of making comfortable investments in the long-term upward-trending S&P500 index and receiving a lifelong monthly income that helps with living expenses. It was inspired by the MZ generation investment trend of receiving monthly dividends through a portfolio composed of domestic and US-listed S&P500 ETFs that distribute dividends quarterly at different times. It was the first to be launched in the domestic ETF market.

Since the listing of the SOL US S&P500 ETF in June 2022, the domestic monthly dividend ETF market has grown to approximately 13.3 trillion KRW in 2 years and 3 months. Currently, 77 products utilizing various underlying assets and investment strategies are being managed.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "This product was planned with the idea of providing domestic investors the joy of receiving a monthly income along with capital gains through familiar S&P500 ETF investments," and added, "We feel great pride and a sense of mission as it has become a major investment trend among individual investors."

He continued, "The SOL US S&P500 ETF is highly attractive for use in pension accounts, which have tax deferral benefits on capital gains and dividends," and added, "It is a product with steady demand centered on individual investors."

Shinhan Asset Management's SOL ETF is evaluated to have played a decisive role in the introduction and expansion of the domestic monthly dividend ETF market. Without changing the distribution cycle of existing products, five new monthly dividend products based on principles were newly listed, growing to a scale of 1.2 trillion KRW.

Center Director Kim said, “We will continue to uphold the principle of supplying new monthly dividend products that allow investors to enjoy the joy of investing in an ETF market that has shifted to being demand-driven.”

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