Shinhan Asset Management's 'SOL Mid-Short Term Corporate Bond Active' ETF Sees Significant Growth
Shinhan Asset Management's 'SOL Mid-Short Term Corporate Bond (A- or better) Active' ETF has surpassed 200 billion won in net assets, marking a noteworthy achievement. This ETF guarantees an expected maturity yield of 3.31% per annum, offering higher returns compared to the current Korean Overnight Financing Rate (KOFR) and the 91-day Certificate of Deposit (CD) rates.
Shinhan Asset Management focuses on corporate and financial bonds with maturities within three years, managing a duration of about 1.5 years to capitalize on potential capital gains from interest rate fluctuations. This operational strategy appeals to retirement pension accounts seeking stable returns and asset protection.
Both individual and banking clients are attracted to its superior yields, resulting in continuous inflow of funds, despite a trend of declining short-term interest rates. This growth indicates the ETF's stability and its relevance as a favourable option for constructing diverse investment portfolios.
Related News
"Parking" Yield Rate at 3.3%…SOL Mid-Short Term Corporate Bond ETF Surpasses 200 Billion KRW - Yonhap InfomaxShinhan Asset Management announced that the net assets of the 'SOL Mid-Short Term Corporate Bond (A or higher) Active' ETF have surpassed 200 billion KRW. On the 23rd, Shinhan Asset Management explained that demand from individual and bank clients continues for parking-type ETFs offering a higher yield-to-maturity (YTM) compared to current market interest rates. Currently, the YTM at maturity for SOL Mid-Short Term Corporate Bond (A or higher) Active ETF is around 3.31% per annum. This is higher than the KOFR (Korean Overnight Financing Rate) and CD (Certificate of Deposit) 91-day interest rates, which are below 3%, set at around 2.4%~2.5%. According to Shinhan Asset Management, this product is within a remaining maturity of less than 3 years.
Shinhan Asset Management's 'SOL Short- and Mid-term Corporate Bond Active ETF' Surpasses 200 Billion Won in Net AssetsShinhan Asset Management announced on the 23rd that the net assets of its 'SOL Short- and Mid-term Corporate Bond (A or higher) Active' ETF have surpassed 200 billion won. Shinhan Asset Management stated, "This was the result of continued fund inflows from individual and bank clients, based on superior profitability and stability compared to market short-term financial products, even in a phase of declining short-term interest rates."