PLUS Share Buyback High Dividend Stock ETF Surpasses 100 Billion Won in Just 3 Weeks After Listing

Hanwha Asset Management announced on October 13 that the total net assets of the "PLUS Share Buyback High Dividend Stock" Exchange-Traded Fund (ETF), which was listed on September 16, have surpassed 100 billion won.

The PLUS Share Buyback High Dividend Stock ETF attracted 32.6 billion won from individual investors on its first day of listing, recording the highest net individual purchase among ETFs listed this year on their respective first trading days.

The government's "Korea Discount" reduction policy was cited as a major factor driving this popularity. Investor expectations have risen as a favorable market environment for shareholder return companies has been created, including discussions on amending the Commercial Act to mandate share buyback cancellations and the consideration of introducing separate taxation on dividend income.

Share buybacks followed by cancellation are regarded as the most direct means of enhancing shareholder value by reducing the number of shares in circulation and raising earnings per share (EPS). Hanwha Asset Management identified an investment opportunity by expanding the concept of shareholder returns, which previously focused solely on dividends, to include share buybacks in response to market changes.

The PLUS Share Buyback High Dividend Stock ETF diversifies investments across the top 30 KOSPI-listed blue-chip companies ranked by "total shareholder return rate," which combines expected dividend yield and the share buyback rate over the past year. Major investment stocks include Korea Zinc, Shinhan Financial Group, Misto Holdings, Hyundai Motor Company, Woori Financial Group, Kia, KT&G, Hana Financial Group, Industrial Bank of Korea, and Meritz Financial Group, among others.

By investing in both the PLUS Share Buyback High Dividend Stock ETF and the PLUS High Dividend Stock ETF, investors can expect to maximize stable cash flow with two dividend payments per month.

The PLUS Share Buyback High Dividend Stock ETF is a monthly dividend investment product targeting an annual distribution rate in the 4% range, and investors who purchase by October 13 will receive the first distribution. The PLUS High Dividend Stock ETF is a month-end dividend product, so investing in both allows investors to receive distributions twice a month.

Hanwha Asset Management explained that dividend stock investment products are attractive not only to investors who require regular cash flow, but also to those seeking to maximize the compounding effect of stocks through reinvestment of distributions.

Kim Jeongseop, Head of the ETF Division at Hanwha Asset Management, introduced, "Companies that can consistently return value to shareholders are those that generate stable profits and have the will to grow together with their shareholders." He added, "These companies are actually suitable for long-term investment, as they provide investors with positive long-term evaluations and raise expectations for share price appreciation."

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