Samsung Active Asset Management Lists New "KoAct High Dividend Active" ETF

Securing Solid Downside Protection with High-Dividend Stocks
Pursuing Dividend Sustainability

Samsung Active Asset Management announced on July 28 that it has newly listed the "KoAct High Dividend Active" exchange-traded fund (ETF), which seeks to maximize the sustainability of dividends through corporate analysis and aims for monthly payouts.

The "KoAct High Dividend Active" ETF employs a portfolio strategy that differentiates it from existing high-dividend products. It is based on a high-dividend portfolio that can reliably secure monthly dividend sources through a strong dividend yield, and it combines this with "potential high-dividend stocks" whose dividends are expected to grow through future earnings expansion and increased shareholder returns. The strategy aims not only for solid dividend income, but also for capital gains arising from corporate value growth.

Recently, as volatility in growth stocks has increased, investor fatigue has grown, and more investors are seeking assets that can both preserve profits realized from the stock price rally in the first half of the year and generate steady cash flow. As high-dividend stocks with earnings-based fundamentals are being spotlighted as a new investment alternative for mitigating market volatility, analysis shows that it is time to consider reallocating a portion of assets into a stable high-dividend portfolio.

KoAct High Dividend Active proactively adjusts stock weights based on real-time forecasts of future dividend yields grounded in proprietary research. If a company's earnings deterioration is anticipated, its weighting is quickly reduced, while stocks with revitalizing shareholder return momentum are added to the portfolio in a timely manner.

The portfolio includes leading companies with strong earnings, such as Hyundai Elevator (7.1%), DB Insurance (5.0%), GS (4.9%), and JB Financial Group (4.8%), in pursuit of downside risk protection. A total of 40 companies with sustainable dividends are expected to be included. The total annual management fee for the product is 0.5%.

Nam Eunyoung, Head of Investment Management Team 1 at Samsung Active Asset Management, stated, "As the value-up policy enters its third year, valuations in the banking and securities sectors have also increased, making it urgent to distinguish between stocks on a case-by-case basis. By identifying market trend changes and diversifying the portfolio through an active strategy, we will create a powerful differentiator from existing high-dividend and monthly dividend products."

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