Shinhan Asset Management announced on the 14th that it will list the 'SOL U.S. S&P 500 U.S. Bond Mixed 50' exchange-traded fund (ETF) on the Korea securities market on the 15th.
The ETF provides monthly dividends, in conjunction with the existing 'SOL U.S. Dividend U.S. Bond Mixed 50' ETF. It allows for 100% of the contributions in retirement pension (DC, IRP) accounts to be invested.
The product diversifies investments equally into the U.S. benchmark index Standard & Poor's (S&P) 500 and U.S. 10-year Government Bonds. Shinhan Asset Management explained that by diversifying investments into the long-term U.S. Government Bonds, categorized as relatively safe assets, alongside the long-term growth potential of the S&P 500, it can reduce the portfolio's volatility.
According to Shinhan Asset Management, in the current phase of U.S. interest rate cuts, it is an advantageous product for long-term investors such as those with pension accounts, as it seeks both capital gains from rising bond prices and dividends.
Kim Jeong-hyun, head of the ETF business at Shinhan Asset Management, said, "If the retirement pension portfolio is managed with a 70% allocation to the SOL U.S. S&P 500 ETF and a 30% allocation to the SOL U.S. S&P 500 U.S. Bond Mixed 50 ETF, the share of U.S. stocks within the retirement pension account can be expanded to a maximum of 85%."
Meanwhile, like the existing SOL monthly dividend ETF products, the product will maximize the use of distribution resources and pay its first monthly dividend on September 15.