SOL Short & Mid-Term Corporate Bond Active ETF Surpasses 300 Billion Won in Net Assets
Shinhan Asset Management announced on September 5 that the net assets of the 'SOL Short & Mid-Term Corporate Bond (A or Higher) Active' ETF have surpassed 300 billion won.
After exceeding 200 billion won in July this year, an additional 100 billion won flowed in within about a month. Despite the recent decline in short-term interest rates, individual investors and bank clients continued to invest, attracted by the higher profitability and stability of this product compared to other short-term financial instruments available in the market.
The trend of short-term funds flocking to 'parking-type ETFs' has also been positive, as the domestic stock market remains range-bound and volatility in the US stock market has increased.
The current yield to maturity (YTM) of the SOL Short & Mid-Term Corporate Bond (A or Higher) Active ETF stands at 3.22%. Through active portfolio management and a strategy of including high-quality corporate bonds, it is recording an annualized return of 4.04%. In contrast, KOFR (Korea Overnight Financing Rate) and CD (91-day) rates remain at 2.5% to 2.53%, respectively.
Heo Ikseo, Head of Bond ETF Management at Shinhan Asset Management, explained, "The SOL Short & Mid-Term Corporate Bond (A or Higher) Active ETF maintains stable yet highly competitive returns compared to other short-term market products by identifying undervalued, high-quality bonds in collaboration with the credit research team."
He added, "Considering the possibility of a base rate cut at the Monetary Policy Committee meeting in October, as well as the potential for additional cuts next year, investors can also expect capital gains resulting from declining interest rates."
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The SOL Short & Mid-Term Corporate Bond (A or Higher) Active ETF selectively invests in credit bonds, such as corporate bonds and other financial bonds, with maturities of up to three years. By managing a duration of around 1.6 years, it seeks to maximize capital gains from interest rate changes and generate excess returns over market rates as a short-term fund parking-type ETF.
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