Shinhan Asset Management's 'SOL US Dividend Dow Jones' ETF Surpasses 500 Billion Won in Cumulative Net Purchases by Individual Investors

The 'SOL US Dividend Dow Jones' Exchange-Traded Fund (ETF) from Shinhan Asset Management has surpassed 500 billion won in cumulative net purchases by individual investors, solidifying its position as a leading domestic US dividend growth ETF.

On September 15, Shinhan Asset Management announced that, as of September 9, since the listing of the SOL US Dividend Dow Jones ETF, the cumulative net purchases by individual investors amounted to 501.4 billion won, and its net assets reached 1.0118 trillion won.

Amid recent corrections in the domestic stock market and increased volatility in the US market, investor interest in dividend stocks has rebounded, leading to increased net buying activity among individuals. In the past month alone, individual investors net purchased 12.3 billion won of this ETF. Despite a reduction in net assets of approximately 44 billion won over the same period, primarily due to market price adjustments, individual net buying continued, indicating sustained investment demand for US dividend growth assets even amidst short-term price fluctuations.

As the stock market's direction remains uncertain due to interest rate and oil price volatility, dividend growth ETFs have come to the fore as a way to diversify away from sector-concentrated growth stock bets and secure regular cash flows. The SOL US Dividend Dow Jones ETF tracks the 'Dow Jones U.S. Dividend 100' index, a flagship US dividend growth index, and invests broadly in high-quality American companies with a consistent record of dividend payments. By following the same underlying index as SCHD, a leading US dividend growth ETF, but implementing a monthly distribution structure, it aims to provide both long-term capital growth and steady cash flow to investors.

Kim Junghyun, Head of the ETF Business Group at Shinhan Asset Management, stated, "Since its listing, the SOL US Dividend Dow Jones ETF has remained committed to investing in US dividend growth companies and has consistently delivered rational monthly distributions using dividend resources. Surpassing 500 billion won in cumulative net purchases by individual investors is a testament to investor trust in this management approach, and regular dividends can provide a solid foundation for long-term investment, especially when the market outlook is uncertain."

The SOL ETF lineup offers a range of US dividend growth asset investment options, including the currency-exposed 'SOL US Dividend Dow Jones', the currency-hedged 'SOL US Dividend Dow Jones (H)', and the 'SOL US Dividend US Bond Mix 50', which can be included as a safe asset in retirement pension accounts. The product suite is structured to allow investors to select an investment method based on their exchange rate outlook, risk appetite, and account type. Distribution timings also vary by product. The SOL US Dividend Dow Jones and SOL US Dividend Dow Jones (H) distribute dividends at the beginning of each month based on the end-of-month record date, while the SOL US Dividend US Bond Mix 50 and SOL US Dividend Dow Jones No. 2 distribute dividends in the middle of each month. By utilizing products with different payment schedules, investors can structure their cash flow to receive distributions twice per month.

Kim also commented, "We will continue to improve our product lineup and enhance our management capabilities to enable investors looking to accumulate dividend assets by reinvesting monthly distributions in their pension accounts to select products that best match their investment preferences and goals."

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