Shinhan Asset Management's 'SOL U.S. Dividend Dow Jones (H)' Ranks No. 1 Among U.S. Dividend Stock ETFs

Shinhan Asset Management’s U.S. dividend-growth investment product, “SOL U.S. Dividend Dow Jones (H),” ranked first for short- and medium-term returns among domestically listed U.S. dividend equity exchange-traded funds (ETFs), benefiting from its ability to guard against exchange-rate volatility.

On Oct. 29, Shinhan Asset Management said the SOL U.S. Dividend Dow Jones (H) ETF ranked first for returns over the past three months, six months and one year among domestically listed U.S. dividend equity ETFs.

According to the Korea Exchange, as of Oct. 28, the SOL U.S. Dividend Dow Jones (H) posted returns of 3.72%, 10.83% and 26.36% over the past three months, six months and one year, respectively. By contrast, the unhedged “SOL U.S. Dividend Dow Jones” returned -4.73% over three months, 1.42% over six months and 19.76% over one year. The currency-hedged product outperformed by 9.41 percentage points over six months and 6.60 percentage points over one year. The result reflects the effectiveness of the currency-hedging strategy in protecting returns in won during periods of volatility in the won-dollar exchange rate.

The SOL U.S. Dividend Dow Jones (H) invests in U.S. dividend-growth stocks while employing a currency-hedging strategy. Its underlying index, the Dow Jones U.S. Dividend 100 Index, selects stocks based on a range of factors, including dividend yield, five-year dividend growth, return on equity (ROE) and cash flow relative to debt. This approach assesses both the sustainability of dividends and financial soundness.

“When volatility in semiconductor and AI-related stocks rises, the diversification benefits of investing in sectors with stable demand, such as consumer staples and health care, become more pronounced,” said Kim Jeong-hyun, head of Shinhan Asset Management’s ETF Business Group. “In particular, when the won-dollar exchange rate falls, returns on U.S. stocks translated into won may decline even if their performance in dollar terms is strong. It is therefore important to choose whether to hedge currency risk based on investment objectives and preferences for currency exposure.” He added, “A barbell strategy combining growth assets centered on semiconductors with dividend-growth ETFs that provide dividend cash flow can be an effective response.”

In addition to its currency-hedged product, Shinhan Asset Management manages a range of U.S. dividend-growth ETFs, including the unhedged “SOL U.S. Dividend Dow Jones,” “SOL U.S. Dividend Dow Jones No. 2,” which makes distributions mid-month, and “SOL U.S. Dividend U.S. Treasury Mix 50,” which can be held at a 100% allocation in retirement pension accounts (DC and IRP).

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