Timefolio Asset Management logo. /Courtesy of Timefolio Asset Management

Timefolio Asset Management noted that its 'TIMEFOLIO Korea Plus Dividends Active' exchange-traded fund (ETF) has risen over 18% in the past month, achieving the highest growth rate among monthly dividends active ETFs. This figure includes a monthly dividend of approximately 0.5%.

Timefolio Asset Management explained that the performance of the ETF is the result of increased weight in securities stocks recently. Timefolio Asset Management has increased its holdings in major securities stocks such as Kiwoom Securities and Mirae Asset Securities, which are expected to see expanded brokerage revenue due to ▲ President Lee Jae-myung's pledge to achieve KOSPI 5000 ▲ increased liquidity due to the second half supplementary budget ▲ Korea's interest rate cut cycle ▲ and expectations for regulatory easing.

It also included high-dividend leading stocks such as Doosan Enerbility, which is expected to benefit from nuclear power policy, and Samyang Foods, which is expected to expand production with the operation of its Miryang Plant 2.

Director General Kim Nam-ho of Timefolio Asset Management stated, "The price-to-book ratio (PBR) of securities stocks remains at 0.6 times, so it is still early to discuss valuation burdens. With the ongoing discussions on amending the Commercial Act, and the government's clear intention to improve the governance structure of domestic listed companies and advance the capital market, we believe that securities stocks have entered the initial stage of structural rerating."

He added, "We consistently implemented Timefolio's unique dividend strategy, considering not only the dividend yield but also the sustainability of dividends and the potential for stock price increases."