As investors favor dividend stocks, the “Korean version of SCHD” reaches 1 trillion won ... individual investors net-buy 100 billion won

[Financial News] With investment demand for U.S. dividend stocks continuing, the net assets of the exchange-traded fund (ETF) known as the “Korean version of SCHD” have topped 1 trillion won. Individual investors have also been net buyers of more than 100 billion won since the start of the year.
Korea Investment Management Co., Ltd. said on the 2nd that the net assets of its ACE U.S. Dividend Dow Jones ETF totaled 1.0066 trillion won as of the 30th of last month.
Individual investors’ cumulative net purchases since the start of the year stand at 107.3 billion won. Since September, they have been net buyers on all but four trading days.
Returns were also solid. Its three-year return was 57.33%, the highest among domestic passive ETFs tracking the same underlying index. Returns over the past six months and one year were 2.93% and 24.90%, respectively.
The ACE U.S. Dividend Dow Jones ETF tracks the same “Dow Jones U.S. Dividend 100 Price Return Index” as the Schwab US Dividend Equity ETF (SCHD), a leading U.S. dividend ETF. SCHD is a flagship dividend ETF that invests in 100 high-quality U.S. dividend stocks. The index selects 100 U.S.-listed companies that have paid dividends for at least 10 years and have strong financial metrics.
Korea Investment Management Co., Ltd. first launched the product in South Korea in October 2021. It pays distributions monthly, and its annual total expense ratio is 0.01%.
Yongsoo Nam, head of ETF Management at Korea Investment Management Co., Ltd., said, “As investment demand for dividends and cash flow expands, interest is also growing in companies that have consistently paid dividends for at least 10 years,” adding, “This is a U.S. dividend-stock investment strategy suited to investors seeking stable cash flow over the medium to long term.”
[email protected] Bae Han-geul Reporter