SOL Korea High Dividend ETF Pays First Monthly Dividend

95 KRW Per Share, 0.86% Monthly Distribution Rate
Net Asset Value Surges from 10 Billion to 147 Billion KRW in 1.5 Months
Differentiated Strategy: Inclusion of Separate Taxation on Dividend Income and Dividend Reduction Companies

Shinhan Asset Management announced on November 17 that the 'SOL Korea High Dividend' ETF, which was listed this past September, will pay its first monthly dividend. The scheduled distribution per share is 95 KRW, calculated based on one and a half months since listing. The monthly distribution rate is approximately 0.86%, placing it among the top tier of major domestic high-dividend ETFs.

The SOL Korea High Dividend ETF is a next-generation monthly dividend ETF that actively reflects the government's latest dividend policy trends, such as the expansion of separate taxation on dividend income, reduction of dividends, and encouragement of treasury share cancellation. From the first day of listing, it attracted significant market attention, with net purchases by individual investors reaching 21.5 billion KRW. Since listing, the cumulative net purchases by individual investors have amounted to 112.5 billion KRW.

The net asset value is also increasing rapidly. The ETF, which was listed with a size of 10 billion KRW, grew to 147 billion KRW as of the closing price on the 14th.

Kim Junghyun, Head of the ETF Business Division at Shinhan Asset Management, introduced the product by saying, "The SOL Korea High Dividend ETF is characterized by its agile reflection of evolving domestic dividend policy improvements and by structuring its portfolio to maximize the actual dividend yield." He added, "We plan to consistently provide attractive monthly dividends tailored to the needs of domestic dividend investors."

Unlike conventional high-dividend ETFs that simply include stocks with high dividend yields, the SOL Korea High Dividend ETF is a strategic high-dividend ETF that comprehensively considers shareholder return factors such as separate taxation on dividend income, reduction of dividends, and treasury share buyback and cancellation policies. It differentiates itself by potentially increasing the actual amount of dividends received through separate or non-taxation benefits for companies that implement dividend reductions.

The portfolio consists of Woori Financial Group, Hana Financial Group, Shinhan Financial Group, KB Financial Group, Hyundai Motor, Kia, KT&G, Samsung Life Insurance, and Samsung Fire & Marine Insurance. Among the entire portfolio, approximately 76% consists of companies eligible for separate taxation on dividend income, and about 22% consists of companies implementing dividend reductions.

Kim further explained, "The SOL Korea High Dividend ETF provides stable monthly distributions, making it especially suitable not only for investors who prefer regular income but also for pension account investors focused on long-term asset formation, such as pension savings and IRP." He added, "In the current phase of increased market volatility due to recent corrections in the US market and external factors such as interest rates and exchange rates, a dividend-focused defensive asset allocation that ensures cash flow without being swayed by short-term fluctuations is becoming increasingly important."

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