If You're Concerned About Heavy Exposure to AI Tech Stocks... KB Asset Management: "RISE US High Dividend Dow Jones TOP10 Worth Watching"

Returned 17.10% Since Listing
Paid Monthly Distributions for 11 Consecutive Months

Investors' attention, once focused on large-cap artificial intelligence (AI) tech stocks, is spreading to dividend stocks that offer dividend income and resilience in economic downturns. On November 5, KB Asset Management said its RISE US High Dividend Dow Jones TOP10 exchange-traded fund (ETF) is attracting attention as an effective dividend investment, with double-digit returns since its listing and steady monthly distributions.

Since its listing in October 2025, the RISE US High Dividend Dow Jones TOP10 ETF has returned 17.10%. It has performed well even as large-cap tech stocks have weakened amid recent concerns about the burden of AI-related capital expenditures.

The ETF tracks the Dow Jones U.S. High Dividend 10 Index. It selects the 10 companies with the highest expected dividend yields over the next year from the 30 constituents of the Dow Jones Industrial Average and invests in them in equal proportions. A distinctive feature is that it selects stocks based on expected future dividend yields rather than past dividend performance. Its holdings are rebalanced annually.

As of November 4, its main holdings were Amgen (11.90%), Merck (11.66%), Coca-Cola (11.34%), Chevron (10.84%), UnitedHealth (10.24%), Procter & Gamble (10.18%), Home Depot (8.80%), IBM (8.73%), Verizon (8.62%), and Nike (7.45%). The ETF focuses on leading companies in defensive sectors such as healthcare and consumer staples. Because it does not include tech stocks related to semiconductors or AI infrastructure, it may offer relative resilience during downturns centered on technology stocks.

The ETF also pays monthly distributions. It has made 11 distributions since its listing, averaging about KRW 34 per share. Cumulative distributions total KRW 370 per share, equivalent to 3.26% of its closing price on November 3.

The total expense ratio is 0.01% per year. The product is also available for investment through retirement pension (DC and IRP) and pension savings accounts.

Yuk Donghwi, head of ETF Product Marketing at KB Asset Management, said, "AI megacaps led the market over the past year, but interest in dividend stocks is also rising as the burden of investing in tech stocks has recently come into focus." He added, "Adding the RISE US High Dividend Dow Jones TOP10 ETF, which pays monthly distributions, to an existing portfolio with a high allocation to growth stocks can help balance the portfolio amid heightened market volatility."

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