Kiwoom Asset Management announced on the 15th that it will lower the total expense ratio of its exchange-traded fund (ETF) 'KIWOOM High Dividend' from 0.4% to 0.19%. It will also change the dividend record date from the end of the month to the 15th of each month, establishing a 'monthly dividend' system.
Kiwoom Asset Management aims to reduce the total expenses of KIWOOM High Dividend to minimize the burden on investors, while expecting that the monthly dividend structure will allow for more flexible adjustments in the timing of reinvestment of the payouts.
KIWOOM High Dividend follows the 'MKF Wealth High Dividend 20 Index'. It focuses on the 20 stocks with the highest dividend yields among those with a dividend payout ratio of less than 90%, having recorded net income in the black for four consecutive years. Approximately 60% of the included stocks are financials in high-dividend sectors like banking, insurance, and securities.
KIWOOM High Dividend has not reduced the per share dividend even once in the past three years, with a recent dividend yield of about 4.99% over the last year. The annual yield of KIWOOM High Dividend is 53.98%, while the return over the last three years is 146.59%.
A Kiwoom Asset Management official noted, 'The domestic dividend investment environment is gradually improving in line with government capital market policy trends, such as recent amendments to the Commercial Act, separated taxation of dividend income, and inducement of expanded dividends.' He added, 'As there is an increasing psychological burden regarding U.S. ETF investments due to the reorganization of foreign tax credit and ongoing legislative efforts related to U.S. tax laws, demand for domestic equity ETFs, including domestic high-dividend ETFs, is expected to further expand.'