New Listing of 'SOL Medium-Short Term Corporate Bonds (A- or Higher) Active'

Pursuing Additional Returns Over Market Interest Rates

Shinhan Asset Management is listing the 'SOL Short- to Medium-Term Corporate Bonds (A- or higher) Active ETF' on the Korea Exchange.

Amid an environment favorable to bond investment due to expectations of interest rate cuts, this ETF product is designed as a short-term fund parking type that seeks stable interest income and capital gains from declining interest rates through investment in high-quality corporate bonds.

As of the listing date, the expected maturity yield is approximately 3.6% per annum, demonstrating superior performance competitiveness compared to the current KOFR (Korea Overnight Financing Rate) and 91-day CD rates, which are formed at around 2.9% to 3.1%.

The SOL Short- to Medium-Term Corporate Bonds (A- or higher) Active ETF selectively invests in credit bonds such as corporate bonds and other financial bonds with a remaining maturity of within three years. By managing duration at around 1.6 years, it aims to maximize capital gains from interest rate fluctuations and pursue excess returns compared to market interest rates.

Kim Jeong-hyun, Head of the ETF Business Division at Shinhan Asset Management, said, "In the context of increased financial market uncertainty due to tariff issues following President Donald Trump's inauguration, we planned the 2025 version of the parking-type ETF reflecting the demand for short-term fund investment amid the arrival of a declining interest rate period."

Since the SOL Short- to Medium-Term Corporate Bonds (A- or higher) Active ETF is classified as a safe asset, it can be invested 100% with accumulated funds in retirement pension (DC/IRP) accounts and is especially useful in Individual Savings Accounts (ISA) that offer tax benefits. It can be freely bought and sold at any time. There is no need to deposit funds for a long period; investors can receive interest income for the desired period and sell when funds are needed. It also offers the advantage of flexible management of surplus funds.

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