Shinhan Asset Management's 'SOL Korea High Dividend ETF' Success
The 'SOL Korea High Dividend ETF' by Shinhan Asset Management has captivated investors' attention with remarkable achievements in just a month since its launch. This ETF incorporates the latest dividend policies such as separate taxation on dividend income, reduced dividends, and share repurchases, presenting a tactical approach. Its net assets surged from 100 billion won to over 1 trillion won in a mere month, reflecting enormous interest from individual investors. The cumulative net buying by individual investors reached 835 billion won, marking it as the most significant among domestic dividend ETFs.
The major portfolio includes financial holding, automotive, and insurance sectors, primarily focusing on high-dividend stocks. Especially with a significant proportion of companies subjected to separate tax on dividends, it offers tax-saving benefits. It is suitable for investors seeking regular income, making it an attractive option for pension account holders. The first monthly dividend is scheduled for November 17, underscoring Shinhan Asset Management's strategic and distinct dividend approach.
Hana Asset Management's '1Q Nasdaq 100 ETF' Surpasses 50 Billion KRW in Net Assets
Hana Asset Management's '1Q Nasdaq 100 ETF' has recently exceeded 50 billion KRW in net assets, attracting considerable attention. The ETF tracks the Nasdaq 100 index, featuring major U.S. tech stocks like Apple, Google, and Tesla. With an annual total expense ratio of just 0.0055%, it offers favorable conditions for long-term investors.
Data indicates that individual investors have net-purchased this ETF to the tune of 23.1 billion KRW, highlighting high interest. This underscores the ETF's popularity as a financial product among diverse investors, thanks to its low-cost structure and high investment efficiency.
Apart from this, Hana Asset Management is also launching other ETFs targeting pension investors. These ETFs follow major U.S. indices, aligning with a global trend towards low-cost strategies that positively impact investment returns. Such a comprehensive product lineup caters to a broad range of investors.
Analyzing Major Trends in the ETF Market
Samsung Asset Management's 'KODEX 200 Mixed U.S. Treasury ETF' is gaining popularity in individual and retirement pension accounts. This ETF balances its investments between the KOSPI 200 index and 10-year U.S. Treasury bonds to manage volatility. The fund has recently achieved a net asset value of 435.8 billion KRW. Showing impressive returns, it recorded gains of 15.3% in the past three months, 27.1% over six months, and has grown by 30.5% year-to-date. The fund also provides monthly dividend payments, which enhance cash flow diversity, thereby attracting extensive investment from individuals and banks alike.
On the other hand, Hana Asset Management's '1Q U.S. Nasdaq 100 ETF' stands out for its low fee structure, operating at an annual cost of only 0.0055%. This cost efficiency has led it to surpass a net asset value of 50 billion KRW. Meanwhile, Shinhan Asset Management's 'SOL Korea High Dividend ETF' is favored by investors for its high dividend yields and tax advantages. The ETF has reported a substantial individual net purchase amounting to 83.5 billion KRW, drawing interest due to its dividend yield and tax-saving benefits.
Growth of the Korean ETF Market and Focus on Thematic Products
The Korean Exchange-Traded Fund (ETF) market is expanding rapidly. The top-performing ETF this week was 'SOL China Solar CSI (Synthetic)' by Shinhan Asset Management, which recorded a 12.59% increase. Investors also saw returns of 7.73% from Mirae Asset Management’s 'TIGER China Clean Energy SOLACTIVE', while the KOSPI leveraged inverse product 'PLUS 200 Futures Inverse 2X' emerged as a key investment option after a 7.28% gain.
This week saw the listing of two new ETFs: Samsung Asset Management's 'KODEX 28-12 Corporate Bond (AA- or above) Active' and Mirae Asset Management's 'TIGER USA AI Power SMR'. These new listings offer diverse investment options, with particular interest in American AI and Small Modular Reactor (SMR) power investments.
In the stock market, the rise dominated by large-cap stocks has led ETFs to focus on thematic products centered around select large-cap stocks. Half of the newly listed ETFs in October are structured to invest in specific themes and large-cap stocks. This approach targets high returns but also comes with inherent risks.
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