KB Asset Management Launches 'KB RISE US High Dividend ETF Dream Fund'

[Financial News] KB Asset Management announced on the 27th that it has launched the 'KB RISE US High Dividend ETF Dream Fund'. 
'KB RISE US High Dividend ETF Dream Fund' is an EMP (ETF Managed Portfolio) fund that invests more than 50% of its assets in exchange-traded funds (ETFs). This fund is characterized by ultra-diversified investment and can invest efficiently using low-cost ETFs.
The main investment destinations are US dividend stock representative ETFs and high-income ETFs. It incorporates the investment strategy of the US representative dividend ETF 'SCHD', which is widely known to domestic investors. 
This fund first invests about 80% in the US high dividend index representing US dividend stocks to pursue long-term stock price appreciation and dividend income simultaneously. It is characterized by diversified investment in US high dividend indices with different characteristics, such as 'Dow Jones US Dividend' focusing on mid-to-short-term growth, 'S&P Dividend Aristocrats' focusing on large-cap stocks, and 'S&P Dividend Kings' focusing on value stocks.
The remaining 20% is invested in covered call ETF products to earn alpha (α) returns while maximizing synergy with US dividend stocks. The covered call ETF, a high-income product, selects products suitable for long-term investment by considering participation rates and annual distribution rates. It invests in products with annual distribution rates exceeding 10% while sharing more than 50% of stock price appreciation when stocks rise. Investors interested in US dividend stock products can invest in this product to pursue stable dividend income along with alpha returns. It is particularly suitable for pension investors seeking stable returns.
In the case of US dividend stocks boasting high dividend yields, the advantage is that they can defend a certain portion of returns even if the market declines. Looking at data from the past six years since 2018, the dividend stock index achieved an excess return of over 2% per month on average compared to the Standard & Poor's (S&P) 500 index during market downturns. The fund is available for subscription at KB Kookmin Bank and KB Securities, and sales channels will be expanded in the future.
khj91@fnnews.com Hyun-Jung Kim Reporter