SOL US S&P500 US Treasury Mixed 50 ETF to Pay First Monthly Dividend

Shinhan Asset Management announced that the "SOL US S&P500 US Treasury Mixed 50" ETF, which was listed in July, will pay its first monthly dividend on the 16th. The scheduled distribution amount is 36 KRW per share, with an expected annualized distribution rate in the 2% range.

The SOL US S&P500 US Treasury Mixed 50 ETF is designed to allocate 50% each to the leading US index S&P500 and to 10-year US Treasury bonds. By combining the long-term growth potential of the S&P500 with the relative safety of long-term US Treasury bonds, the ETF aims to lower portfolio volatility and provide downside protection during market declines.

In a phase where the US is entering an interest rate cut cycle, investors can pursue both capital gains from rising bond prices and dividend income. This makes it an advantageous product for long-term investors, such as those using pension accounts.

Together with the SOL US Dividend US Treasury Mixed 50 ETF, this product pays monthly dividends around the middle of each month and allows investors to allocate 100% of their contributions from retirement pension (DC/IRP) accounts, which is a significant advantage.

Kim Junghyun, Head of the ETF Business at Shinhan Asset Management, explained, "As the US Federal Reserve signaled a rate cut at the September FOMC meeting, the investment appeal of long-term Treasuries is increasing." He added, "The SOL US S&P500 US Treasury Mixed 50 ETF is optimized for pension investment, as it enables diversification across the leading US index, long-term US Treasuries, and US dollar assets with a single investment."

Kim further emphasized, "This is the only bond-mixed ETF that combines the S&P500 and long-term US Treasuries and pays monthly dividends. By actively utilizing tax-advantaged accounts such as ISA, pension savings, and retirement pensions, investors can adjust their equity allocations while building various strategies to receive monthly dividends."

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