Shinhan Asset Management's 'SOL US Dividend Dow Jones' Net Assets Surpass 200 Billion KRW

Shinhan Asset Management announced on the 14th that the net assets of the ‘SOL US Dividend Dow Jones (H)’ exchange-traded fund (ETF) have exceeded 200 billion KRW.

SOL US Dividend Dow Jones (H) is a product that adds a currency hedging strategy to the domestic representative dividend growth ETF, ‘SOL US Dividend Dow Jones.’ It was listed on the Korea Exchange in March last year. Amid high exchange rate volatility, it has steadily grown in size as individual investors who want to minimize the impact of exchange rate fluctuations on performance have shown interest. In just a year and a half since its listing, the net asset size has increased more than 25 times. During this period, the cumulative net purchase amount by individual investors reached 109.3 billion KRW.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, “SOL US Dividend Dow Jones (H) is the only currency-hedged ETF with a dividend growth strategy listed in the domestic market, establishing itself as an essential product for investors’ currency-hedged portfolios beyond the representative indices.” He added, “With exchange rate volatility still high and the World Government Bond Index (WGBI) inclusion event scheduled for November next year, continuous interest in currency-hedged strategy products is necessary.”

As uncertainty in domestic and international financial markets continues and the interest rate cut cycle begins, domestic investors’ interest in currency-hedged products is steadily increasing. In the case of overseas equity-type products, there are 25 products with a total size of 3 trillion KRW, and net assets have increased by nearly 1 trillion KRW compared to the end of last year.

Kim said, “Based on overseas cases, the WGBI inclusion effect is expected to stabilize exchange rates, so the utilization of currency-hedged ETFs is expected to increase. However, it is important to select currency-exposed and currency-hedged products according to investment objectives and risk tolerance, and to invest steadily through tax-advantaged accounts.”

Meanwhile, Shinhan Asset Management operates four types of the ‘SOL US Dividend Dow Jones ETF series.’ These include the Korean version of SCHD, ‘SOL US Dividend Dow Jones,’ the currency-hedged ‘SOL US Dividend Dow Jones (H),’ ‘SOL US Dividend US Bond Mixed 50,’ which can be invested 100% through retirement pension accounts, and on the 8th, they listed ‘SOL US Dividend Dow Jones TR,’ which automatically reinvests dividends.

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