Timefolio Asset Management announced on the 23rd that it will launch Korea's only active-type "Korean version of SCHD," the "TIMEFOLIO U.S. Dividend Dow Jones Active" exchange-traded fund (ETF), on the 29th, which pays monthly dividends.
This product is managed based on the same benchmark, the Dow Jones U.S. Dividend 100 Index, as the representative U.S. dividend ETF, "Schwab U.S. Dividend Equity (SCHD)." Timefolio Asset Management noted that it is characterized by adding an active management strategy to pursue higher dividends and capital gains compared to existing SCHD.
While existing ETFs known as the Korean version of SCHD all followed the index passively, this ETF is designed with an active structure that can flexibly adjust the composition and weight of stocks according to market conditions.
"Monthly dividends," paid on the 15th of each month (business days), are also a feature. The target dividend yield is around 6% annually, which is higher compared to the existing passive ETFs based on the same index, which yield around 3%.
If an investor invests 10 million won, this ETF incurs an expense of 79,000 won more than the domestically listed passive SCHD (annual 0.01%), which has a fee of 0.8%. However, through a high dividend rate of 6% per year, an additional revenue of 250,000 won can be earned compared to the average passive dividend yield of 3.5%.
Kim Nam-ho, a manager at Timefolio Asset Management, said that "for investors who value actual performance, a simple low-fee ETF is not the best option, and they should choose an ETF with high total returns," adding that "as interest in U.S. dividend stocks has increased in a highly volatile market, we will strive to select stocks based on thorough research to pursue stability and profitability together."