PLUS Share Buyback High Dividend Stock ETF Sells Out on Listing Day

Hanwha Asset Management announced on September 17 that the 'PLUS Share Buyback High Dividend Stock' Exchange Traded Fund (ETF) ranked first in net individual purchases on its listing day among all ETFs listed this year.

The PLUS Share Buyback High Dividend Stock ETF recorded a net individual purchase of 32.6 billion won on its listing day, September 16. This is the highest net individual purchase on the listing day among all ETFs listed this year. Considering that the average net individual purchase on ETF listing days this year is around 2 billion won, this is a remarkable achievement.

A total of 4,993,541 shares of the PLUS Share Buyback High Dividend Stock ETF were traded, with a total transaction value of approximately 50.3 billion won. All of the initial 1.5 million shares offered at the start of trading, worth about 15 billion won, were sold out early in the session.

The ETF employs a strategy of diversifying investments across the top 30 companies ranked by the sum of dividend yield and share buyback rate over the past year, known as the 'total shareholder return rate.' This approach, in line with the 'Value-Up' trend, is considered to have attracted significant interest from individual investors. There are high expectations that share buybacks followed by cancellation, which directly increase earnings per share (EPS), will become an effective means of enhancing shareholder value.

Among the included stocks, Mistoholdings saw its share price rise by over 6% during the session following news that it had decided on a 20 billion won share buyback and a special dividend. Mistoholdings has paid a special dividend for four consecutive years, from 2022 through this year. As of the listing date, it was included in the PLUS Share Buyback High Dividend Stock ETF with a 4.99% weighting.

Geum Jungseop, Head of the ETF Business Division at Hanwha Asset Management, stated, "It has been confirmed that there is significant investor interest in strategies that incorporate the U.S.-style shareholder return model, symbolized by Meritz Financial Group." He added, "If investors combine the PLUS High Dividend Stock ETF, which offers an annual yield of around 5%, with other investments, they can receive distributions twice a month-mid-month and end-of-month-which will help them manage their cash flow."

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