Shinhan Asset Management CI.

Shinhan Asset Management announced on the 22nd that it will change the name of the exchange-traded fund (ETF) SOL U.S. Dividend Dow Jones Total Return to “SOL U.S. Dividend Dow Jones No. 2” and shift to a monthly distribution method. The first distribution will start on the 16th of next month, with distribution payments expected to be issued in mid-month thereafter.

Shinhan Asset Management also plans to lower the total expense ratio of SOL U.S. Dividend Dow Jones No. 2 from the current annual rate of 0.05% to 0.01%. The changes will take effect starting on the 30th.

According to amendments to the income tax law enforcement ordinance, starting in July, dividends generated from overseas equity ETFs will be settled and distributed at least once annually. This change eliminates the possibility of automated reinvestment (total return), leading to a shift toward a payment method for dividends (price return).

A representative from Shinhan Asset Management noted that “SOL U.S. Dividend Dow Jones No. 2 ETF will operate in the same way as SOL U.S. Dividend Dow Jones, which distributes at the beginning of the month, so investing in both products will allow for receiving distributions twice each month.” They also stated, “To ensure investor protection and tax equity, the total expense ratio was adjusted from 0.05% to 0.01%.”

SOL U.S. Dividend Dow Jones aims to pay dividends as closely as possible to the leading U.S. dividend ETF “Schwab U.S. Dividend Equity ETF (SCHD).” The annual dividend yield for 2024 was the same as SCHD at 3.65%.