Samsung Asset Management to Transition TR-type Overseas ETFs to Distribution Type
Samsung Asset Management has announced plans to transition its TR-type overseas ETFs to a distribution type in response to the 2024 tax law amendments. The ETFs in question include KODEX U.S. S&P500TR and KODEX U.S. Nasdaq100TR, which, upon completion of the transition, will settle and distribute dividend income at least once annually. The company aims to maintain the industry's lowest total expense ratio of 0.0099% while pursuing long-term returns, thus providing investors with a consistent successful investment experience.
This initiative is particularly advantageous for long-term pension investors, as the tax law amendments concerning pensions allow investors to proceed under more favorable conditions. Samsung Asset Management is focused on building sustained trust among ETF investors, enhancing its solid position in both domestic and international investment markets. The company's strategic strengthening is evident as it seeks to offer enhanced investment opportunities across diverse markets worldwide while maintaining competitive expense rates.
Samsung Asset Management's KODEX 25-12 Banking Bond ETF Surpasses KRW 1 Trillion in 76 Trading Days
Samsung Asset Management's 'KODEX 25-12 Banking Bond (AAA) Active ETF' has surpassed KRW 1 trillion in net assets just 76 trading days post-listing. This ETF focuses on investing in AAA-rated bank bonds with maturities until December 2025, offering a higher expected yield of 2.87% compared to treasury bonds, making it an attractive choice for investors seeking stability amidst market volatility.
This financial product is deemed suitable for both individual and institutional investors due to its tax-saving benefits. The absence of penalties for mid-term sales and the capability to invest through various tax-efficient accounts enhances its appeal, especially as concerns about economic recession and delays in U.S. interest rate cuts persist. The distinctive features of this ETF are driving numerous investors, both individuals and institutions, to reallocate their investments towards this promising option.
Samsung Asset Management Shifts Focus to Distribution-type ETFs
Samsung Asset Management has announced plans to convert its existing overseas Total Return (TR) ETFs to distribution-type ETFs starting July 1, in response to amendments in the Ministry of Economy and Finance's tax regulations. These amendments require dividends and interest income to be distributed at least once a year. The total expense ratio for KODEX S&P500TR and KODEX NASDAQ100TR will be maintained at 0.0099%, attracting investors with a significantly lower cost compared to similar products.
While these changes might reduce the compounding benefits of TR-type ETFs, they offer stable distribution income, potentially appealing to long-term investors. The alteration in realized income methods due to the tax law revisions is noteworthy, and Samsung Asset Management aims to expand its market share by navigating these adjustments. Furthermore, as investors increasingly prefer stable cash dividends, the demand for distribution-type ETFs is expected to rise.
Five New ETFs Listed on Korea Exchange
The Korea Exchange has announced plans to list five new Exchange Traded Funds (ETFs) on the securities market on the 21st. These ETFs, focused on U.S. dividend stocks, the cosmetics industry, the top 30 U.S. equities, small and medium manufacturing, and AI semiconductor technology, are being issued by Mirae Asset Global Investments, Shinhan Asset Management, Hana Asset Management, Korea Investment Management, and IBK Asset Management, reflecting a broad spectrum of market interests.
Mirae Asset's 'TIGER US Dividend Dow Jones Target Daily Covered Call' seeks stable returns by employing a covered call strategy based on U.S. dividend stocks. Shinhan's 'SOL Cosmetics TOP3 Plus' targets growth potential by investing in the domestic cosmetics industry. Meanwhile, Hana's '1Q US Dividend 30' aims for consistent dividend yields by investing in top U.S. dividend-paying stocks.
Korea Investment's 'ACE U.S. Central Small & Mid Manufacturing' focuses on small and medium-sized manufacturing businesses in the U.S., looking to capture high growth potential in an expanding industry. Lastly, IBK's 'ITF K-AI Ban-Door Tech' invests in AI semiconductor technology, seeking growth in cutting-edge and innovative sectors.
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