"KIWOOM Samsung Electronics&SK hynix Bond Balanced 50" ETF, November Distribution Rate of 1.60%

November distribution of 160 won per share
At least 130 won per share distributed for seven consecutive months

Kiwoom Asset Management said on Nov. 11 that its "KIWOOM Samsung Electronics&SK hynix Bond Balanced 50" exchange-traded fund (ETF) will pay a distribution of 160 won per share in November.

The record date for the distribution is Nov. 13, and payment will be made on Nov. 17. Investors who purchase the ETF by Nov. 11 will be eligible to receive the distribution. The November distribution rate is about 1.60%.

Since its listing in April, the ETF has paid distributions in the middle of each month, starting in May. It paid 152 won in May, 159 won in June, 160 won in July, 139 won in August, 151 won in September and 146 won in October, and will pay 160 won in November. This marks seven consecutive months of distributions of at least 130 won per share. Cumulative distributions since listing total 1,067 won per share.

The KIWOOM Samsung Electronics&SK hynix Bond Balanced 50 ETF is a bond-equity balanced ETF that invests 25% each in Samsung Electronics and SK hynix, with the remaining 50% allocated to domestic short-term bonds. By holding both stocks and bonds, it seeks to reduce volatility compared with equity funds while paying distributions in the middle of each month.

In particular, the ETF uses a "performance-linked special distribution" strategy, under which it can sell part of its stock holdings and distribute the realized gains when its net asset value (NAV) exceeds a set threshold. In addition to stock dividends and bond interest income, it can use capital gains from trading domestically listed stocks as a source of distributions. Special distributions funded by gains from trading domestically listed stocks are also tax-exempt under current tax law. However, the actual distribution amount may vary depending on investment performance, and tax treatment depends on the source of the distribution.

When combined with products that distribute at the end of the month, a mid-month distribution structure can help investors spread out when they receive distributions. The ETF can also be held in defined-contribution (DC) retirement pension and individual retirement pension (IRP) accounts, as it has a bond-equity balanced structure with a 50% allocation to stocks.

Lee Kyungjun, head of the ETF Management Division at Kiwoom Asset Management, said, "When market volatility rises, as it has recently, regular cash flow is an important investment consideration alongside investment performance. We will continue to strengthen our product management so that mid-month distributions can offer investors a practical option for managing their assets."

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