'SOL Ultra Short-Term Bond Active' ETF Surpasses 1 Trillion Won in Net Assets

"Demand for Short-Term Liquidity ETFs on the Rise"

The net asset value of Shinhan Asset Management's 'SOL Ultra Short-Term Bond Active' Exchange-Traded Fund (ETF) has surpassed 1 trillion won.

According to Shinhan Asset Management, as of September 21, the net asset value of this product was tallied at 1.041 trillion won.

Recently, while the KOFR (Korea Overnight Financing Rate) and 91-day CD rates have hovered at around 3.1–3.2%, this product recorded an annualized three-month return of 3.41%, outperforming key short-term financial products such as money market funds (MMFs), KOFR, and 91-day CDs.

The SOL Ultra Short-Term Bond Active ETF seeks to mitigate interest rate volatility and ensure stable management by building a portfolio primarily composed of high-quality short-term financial instruments, such as ultra short-term bonds (with maturities within three months, rated A- or higher) and commercial papers (rated A2- or higher). It also aims to achieve excess returns by further securing additional interest income through the identification of undervalued, high-quality issues.

Unlike most short-term liquidity ETFs, which track KOFR (risk-free rate), CD (certificate of deposit) rates and are classified as risk assets, the SOL Ultra Short-Term Bond Active ETF is categorized as a safe asset. Therefore, up to 100% of funds in retirement pension (DC/IRP) accounts can be invested in it. In addition to pension accounts, it is also especially useful for ISAs (Individual Savings Accounts).

Heo Ik-seo, Head of the Bond ETF Management Team at Shinhan Asset Management, said, "Recently, as domestic and overseas stock markets continue to trade within a box range with no clear direction and interest rate volatility increases, investor demand is rising again for short-term liquidity ETFs, which serve as a refuge for surplus funds. The SOL Ultra Short-Term Bond Active ETF has continued to deliver stable management even during periods of interest rate fluctuation, based on thorough credit analysis and diversified investment into high-quality short-term assets."

He added, "Its short residual maturity means lower burden from price volatility, and it can be traded on the exchange at any time, allowing investors to directly control the timing of investment and withdrawal, which is a key advantage. Going forward, we will continue to strengthen our line-up of bond ETFs to support short-term cash management needs."

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