Shinhan Asset Management said on the 6th that it carried out the first monthly dividend for SOL CD Rate & Money Market Active, the first cash parking-type monthly dividend exchange-traded fund (ETF) in the country.
According to Shinhan Asset Management, this product distributed a dividend of 180 won per share on the 2nd, the first business day of January. The annualized distribution rate is approximately 4.3%. Kim Jong-hyun, Deputy Minister of the ETF Business Division at Shinhan Asset Management, noted that "SOL CD Rate & Money Market Active ETF utilizes revenue accumulated through short-term bond coupons and interest as the main resource for distribution" and added, "It operates on a strategy of paying cash on the first business day of each month."
For example, if the ETF share price is 50,000 won at the beginning of the month and 50,180 won at the end of the month, it is structured to distribute the revenue of 180 won to investors. The Deputy Minister said, "Investors can check the expected distribution amount through the ETF share price in the meantime."
The SOL CD Rate & Money Market Active ETF includes certificates of deposit (CDs) and short-term bonds as its main components. It can also be entirely invested in retirement pension accounts. The Deputy Minister stated, "Cash assets can be managed through the SOL CD Rate & Money Market Active ETF in long-term investment-oriented Individual Savings Accounts (ISA), pension savings, and retirement pension accounts."