Shinhan Asset Management said on the 13th that it listed a monthly dividends exchange-traded fund (ETF) that proactively incorporates the "payout ratio" into its investment strategy, the "SOL Payout Ratio Top Pick Active" ETF.
This product is the first ETF in Korea that uses the payout ratio, which shows how much of the profit earned by corporations is returned to shareholders, as a core investment criterion.
Shinhan Asset Management noted that because it can evaluate not only the size of dividends but also the willingness and sustainability of dividends, a high-dividend strategy centered on the payout ratio is expected to establish itself as a new investment standard.
According to the 2025 tax revision bill, among corporations whose cash dividends did not decrease from the previous year, those with a payout ratio of 40% or higher are classified as dividend excellence type, and corporations with a payout ratio of 25% or higher and a cash dividend increase of 10% or more from the previous year are classified as dividend effort type. The SOL Payout Ratio Top Pick Active ETF constructed its benchmark methodology to include in the portfolio only corporations that meet these payout ratio requirements.
Kim Jeong-hyeon, head of the ETF business at Shinhan Asset Management, said, "The separate taxation system for dividend income from high-dividend corporations applies starting with dividends paid this year," and added, "Amid the trend of corporations actively raising payout ratios, a dividend strategy centered on the payout ratio will draw attention as an important investment trend in the domestic stock market."
Kim added, "This ETF is designed to pursue both dividend income and capital gains through an active strategy that responds nimbly to the dividend confirmation window and changes throughout the year, at a time when shareholder returns by corporations are strengthening due to policy changes."
However, Kim cautioned that the revised bill applies only to dividends from individual corporations, and that ETF distributions are currently excluded from the scope of separate taxation on dividend income.