Increase in Investment in ISAs and High Dividend ETFs
Individual Savings Accounts (ISAs) in South Korea are evolving from mere tax-saving instruments to ETF investment accounts. Since the introduction of separate taxation on stock dividend income this year, there has been a notable surge in demand for high-dividend ETFs, appealing to investors seeking tax benefits and high returns. Reflecting this trend, the 'KODEX Shareholder Return High Dividend' ETF from Korea Investment & Securities and Mirae Asset Securities has recorded net purchases of approximately 42.3 billion KRW since its listing, highlighting its investment attractiveness.
There is also a growing interest in high-dividend stock investments spurred by government policies aiming to enhance corporate value. Recently, 11 new high-dividend stock ETFs have been introduced, supported by an increase in dividend distributions driven by shareholder return policies. The 'ACE High Dividend' ETF from Korea Investment Trust Management has achieved a substantial 26.49% return since the beginning of the year, garnering significant attention. This fund adopts a strategy based on the 'ex-dividend recovery rate' aiming for stable stock price recovery, investing across 20 high-dividend stock items and featuring a portfolio considerate of stable cash flows from specific industries.
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This year's return breaks 26%... Considering Post-Dividend Price Recovery RateThanks to government initiatives to enhance corporate value, interest in domestic high-dividend stocks is on the rise. Encouraged by shareholder return policies to alleviate the 'Korea Discount', trends are strengthening towards dividend expansion and stock buybacks among companies. In response, 11 new ETFs with the keyword 'high-dividend stocks' have been launched in the past year.
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ISA transforms from 'savings account' to ETF investment account…High-dividend funds flow quickly - Newspim[Seoul=Newspim] Reporter Chae-young Yoon = Individual Savings Accounts (ISA) are rapidly transforming from savings-focused tax-saving accounts to exchange-traded fund (ETF) investment accounts. As separate taxation on stock dividend income is introduced this year, demand for high-dividend ETF investments using ISAs is also increasing.