'Dividend Reinvestment' SOL Korea Value-Up TR ETF Newly Listed

Shinhan Asset Management announced on the 4th that it will list the only dividend reinvestment strategy among value-up related exchange-traded funds (ETFs), the ‘SOL Korea Value-Up TR’ ETF, on the Korea Stock Exchange.

The SOL Korea Value-Up TR ETF tracks the 'Korea Value-Up Index' calculated and published by the Korea Exchange. The Korea Value-Up Index was developed to support a virtuous cycle structure that emphasizes corporate value. In addition to size criteria such as market representativeness and liquidity, it comprehensively considers various qualitative requirements and product characteristics such as profitability, shareholder returns, market evaluation, and capital efficiency, including 100 selected stocks.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "As of now, the dividend yield of the Korea Value-Up Index is around 2%, which is not very attractive for monthly dividend products," adding, "Considering the purpose of the Korea Value-Up Index, which aims to achieve a revaluation of companies through the spread of a corporate value enhancement culture, it is efficient to maximize total returns through the snowball effect of dividend reinvestment."

Shinhan Asset Management operates products that can benefit from corporate value enhancement and shareholder return policy improvements as the value-up program is concretized, along with the SOL Korea Value-Up TR ETF. Notable products include ‘SOL Financial Holding Plus High Dividend,’ which allows concentrated investment in financial holdings that are most actively participating in share buybacks and advanced dividend policies among domestic companies, and ‘SOL Automobile TOP3 Plus,’ which allows concentrated investment in Hyundai Motor and Kia.

Kim said, "Since discussions on the value-up program began, disclosures of share buybacks by companies have increased significantly," and added, "KOSPI cash dividends are also expected to increase by about 10% compared to the previous year."

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