SOL Korea High Dividend ETF Sells Out Within One Hour of Listing

Shinhan Asset Management announced that its monthly dividend product, the 'SOL Korea High Dividend ETF,' which reflects the new government's policy changes and tax reforms, sold out its initial allotment within the first hour of trading on its listing day.

The net purchase amount by individual investors reached 21.5 billion won. Including purchases through retirement pension accounts, the total sales on the first day amounted to 27 billion won.

The SOL Korea High Dividend ETF is not simply a collection of high-dividend stocks; it is a differentiated high-dividend ETF that strategically incorporates the benefits of separate taxation on dividend income, the tax-exempt effect of reduced dividends, and the impact of share buybacks and cancellations. It stands apart from conventional high-dividend ETFs by including not only stable dividends but also institutional and tax-related factors. A key feature is its proactive inclusion of companies implementing reduced dividends, thereby translating tax-exempt benefits into actual distribution increases.

The portfolio includes major financial holding companies such as Woori Financial Group, Hana Financial Group, Shinhan Financial Group, and KB Financial Group as top constituents. It also contains Hyundai Motor, Kia, Hyundai Elevator, KT&G, as well as securities and insurance stocks like Samsung Life Insurance, Samsung Fire & Marine Insurance, Daishin Securities, NH Investment & Securities, and DB Insurance.

Within the entire portfolio, companies benefiting from separate taxation on dividend income account for 76%, while those implementing reduced dividends make up about 22%. As of the end of last month, the expected dividend yield based on the underlying index was 6.68% per annum, offering both stability and income appeal.

Kim Junghyun, Head of ETF Business at Shinhan Asset Management, stated, "The government's strong commitment to strengthening shareholder return policies and expanding dividend tax benefits will serve as a catalyst to resolve the Korea discount and elevate the stock market." He added, "In particular, reduced dividends refer to a method where companies use capital reserves rather than operating profit for dividends, allowing investors to receive dividends without tax burdens, which is expected to result in a higher effective dividend yield."

The first monthly dividend will be paid on November 17. The actual deposit date may vary depending on each securities firm's policy.

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