RISE Korea Financial High Dividend ETF Surpasses 100 Billion KRW in Net Assets

KB Asset Management announced on the 18th that the 'RISE Korea Financial High Dividend ETF' has surpassed 100 billion KRW in net assets.

Amid ongoing concerns over interest rate fluctuations and economic slowdown, there has been a growing demand from investors seeking stable cash flows. As a result, funds are increasingly flowing into high-dividend exchange-traded funds (ETFs) that offer regular dividend payments.

Launched in December last year, the RISE Korea Financial High Dividend ETF is a specialized product that selects leading domestic financial stocks with a focus on high dividends. By exclusively including core high-dividend stocks from the securities, insurance, and banking sectors, the ETF aims to provide stable mid- to long-term returns in addition to dividend income.

The ETF tracks the 'iSelect Korea Financial High Dividend Index' and builds its portfolio based on four quantitative factors: ▲Return on Equity (ROE) ▲Dividend Yield ▲Price-to-Book Ratio (PBR) ▲Market Capitalization.

The main investment targets are traditional high-dividend sectors such as financial holding companies, insurance, and banks. Holdings include Kiwoom Securities (11.13%), Woori Financial Group (10.83%), DB Insurance (10.76%), Shin Young Securities (9.87%), and Samsung Securities (9.77%).

The financial sector is considered a key sector that can offer both stable dividends and improved fundamentals amid structural changes such as declining interest rates, increased asset valuation gains, and enhanced capital adequacy. In addition, as more financial companies strengthen shareholder return policies through dividend increases and share buybacks, the appeal of dividend stocks is rising further.

One of the main reasons investors are showing interest in the RISE Korea Financial High Dividend ETF is its strong performance. The ETF has posted returns of 29.16% over the past three months, 37.96% over six months, and 49.19% year-to-date.

No Areum, Head of the ETF Business Division at KB Asset Management, stated, "The RISE Korea Financial High Dividend ETF delivers differentiated results with a financial stock-focused portfolio that considers not only high dividend yields but also sustainable dividend capacity, capital efficiency, and the potential for corporate value improvement."

She added, "Even amid various market variables such as government policies, companies' voluntary strengthening of shareholder returns, and changes in interest rates, this is a strategic product that allows investors to pursue both stable income and capital gains."

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