Monthly Dividend ETF KSHURE Diversifies Risk

● Dividend Aristocrats ETF Launch

2024 South Korea-U.S. Monthly Dividend ETF Investment: How Much Do You Know Before Investing?

Key Points You Can Learn from This Article

– 2024-2025 monthly dividend ETF investment trends and the inflow of individual funds
– Two key criteria for choosing monthly dividend ETFs (dividend sustainability/growth potential)
– Comparison of the U.S. representative monthly dividend ETF ‘SCHD’ (Schwab U.S. Dividend Equity ETF™) and the Korean version ‘K-SCHD’ (TIGER Korea Dividend Dow Jones ETF)
– The necessity and strategy of portfolio diversification with monthly dividend ETFs
– Changes in the domestic dividend investment environment and tax and tax-saving strategies
– Explanation of the methodology and differentiation of the new ‘TIGER Korea Dividend Dow Jones ETF’

Why Is the Monthly Dividend ETF So Hot?

The amount of money that individual investors have poured into monthly dividend ETFs since 2024 is quite substantial.
As of 2025, it’s approximately 2.8 trillion won, cumulatively approaching 10 trillion won.
The reason is clear: a structure that creates a steady cash flow in an uncertain economic and high-interest-rate environment.
In particular, it shows a wide range of demand from office workers who feel that their salary alone is insufficient to the generation approaching retirement.
Because there are so many ETFs (Exchange Traded Funds), choosing a product itself is becoming increasingly difficult, and investing without criteria is risky.

Key Issues in Monthly Dividend ETF Investment, in Chronological Order

ETFs Investment Megatrend (2024-2025)
- Funds are pouring into monthly dividend ETFs in global and Korean markets.
- The need is focused on a structure that receives 'fixed cash every month' even in uncertainty (high interest rates, geopolitical risks, etc.).
- Looking at the long-term data of major indexes such as the S&P500, the proportion of dividend income in total income cannot be ignored under any circumstances.
- Inflation and bear markets (1940s, 1970s, 2000s) especially increase the contribution of dividend income.
Choosing a Monthly Dividend ETF: The Criteria Are 'Dividend Sustainability' and 'Growth Potential'
- Simply having a high distribution rate (dividend rate) is not necessarily good.
- You can easily fall into the 'dividend trap' of future dividend cuts and stock price declines.
- A diversified and balanced portfolio considering ESG and growth potential is necessary.
- Structural characteristics of ETFs such as component drop need to be considered.
U.S. SCHD vs. Korean K-SCHD (TIGER Korea Dividend Dow Jones ETF)
- The U.S. 'SCHD' (Charles Schwab, an index created by S&P Dow Jones Indices) has been popular for a long time because it satisfies both dividend sustainability and growth potential.
- An ETF applying the same logic has also appeared in Korea. That is the 'TIGER Korea Dividend Dow Jones ETF'.
- By applying the U.S. index directly to Korean listed companies, the portfolio is composed only of companies that meet strict criteria such as 10 years of dividend history, 5 years of growth rate, profitability, and financial soundness.
- About 100 companies are included in the universe in Korea, and the final 30 stocks are selected in detail. Prevents concentration by company and sector, diversification effect compared to KOSPI200, volatility ↓.
The Domestic Dividend Environment Is Gradually Becoming More Favorable
- Shareholder return movements are in full swing due to government policies (tax law revisions, encouraging dividend growth) and investor demands.
- Investment attractiveness is gradually increasing due to discussions on separate taxation of dividend income and expansion of tax-free limits within IS accounts (2 million to 4 million won).
- Domestic monthly dividend ETFs are also advantageous in terms of pre-tax and after-tax returns, low withholding tax burden, volatility defense, and tax savings.
Portfolio Diversification and Investment Tips: Putting Everything in the U.S. Is a 'Risk'
- U.S. stock market 'shake-ups' and increased volatility in 2023-24. 100% U.S. investors are suffering.
- Management of 'all-side' risks such as global geopolitical risks, the U.S. presidential election (Trump, etc.), and exchange rate fluctuations is essential.
- Diversification of portfolios into domestic (Korea), U.S., and emerging markets is necessary.
- Due to the characteristics of domestic ETFs, the timing of monthly dividend payments varies (mid-month/end of month, etc.), so dividend timing within the portfolio can also be strategically diversified.
- However, most companies in Korea have December closing, and asset management companies pay dividends monthly.
- There is no corporate closing period distribution structure like in the U.S.

Characteristics of the TIGER Korea Dividend Dow Jones ETF

– It is called K-SCHD because it uses almost the same methodology as the U.S. SCHD.
– Comprehensive index selection based on 10 consecutive years of dividends, 5-year dividend growth rate, profitability (ROE), and debt ratio.
– Limits the number of stocks to 30 through diversified investment to prevent stock and sector concentration.
– Advantage of building a portfolio that considers mid-month dividend payments, domestic taxes, and tax benefits.

When and How Much Weight Should Be Given to Domestic Dividend Investment?

– Actively use IS accounts (tax-free limit of 2 million to 4 million won).
– If you don’t like U.S. withholding tax and exchange rate loss burdens, it is advantageous to move some of your portfolio to domestic monthly dividend ETFs.
– The proportion of domestic dividend stock ETFs in the overall asset ETF investment should be flexible according to investment preferences and long-term goals.
– It is recommended to maintain the U.S. core ‘Maginot Line’ and practice a diversified portfolio outside of Korea.

Conclusion

– The 2024-2025 investment trend can be summarized as the deepening of the monthly dividend ETF market and the expansion of global diversification investment.
– A combination of global dividend strategies like SCHD + domestic dividend ETFs is the key to risk management.
– True smart dividend investment is established when considering stable cash flow, tax savings, and growth potential in a volatile market.

Monthly dividend ETFs are expected to remain popular investments in 2024-2025. Dividend sustainability, growth potential, and portfolio diversification are key. Leverage the U.S. SCHD and domestic K-SCHD (TIGER Korea Dividend Dow Jones ETF) to target both global and domestic markets. Actively utilize tax-saving accounts and diversify your portfolio to defend against volatility and geopolitical risks.

[Related Articles…]

U.S. Dividend ETF Investment: Is SCHD the Answer?
Domestic ETF Portfolio Strategy Suitable for Retirement Pensions and ISAs

*YouTube Source: [와이스트릿 – 지식과 자산의 복리효과]

– 명품 배당 ‘한국판 슈드’가 온다…고르고 고른 알짜 배당주들 다 모았습니다 / 미래에셋자산운용 TIGER 코리아배당다우존스 ETF

● Energy Stocks Surge – HD Hyundai Leads

2024 Global Market: AI, Robotics, and Renewable Energy Issues – Themes and Stock Trends Investors Should Watch

Here's a preview of what's inside.
This article delves into the recent key issues of Artificial Intelligence (AI), Robotics, and Renewable Energy (especially solar/nuclear power) themes, which are key keywords in the 2024 domestic and international global economic outlook. We will deeply cover beneficiary stocks for each theme, strategies for responding to sharp rises and falls, and market changes to watch for in the coming week.
I will systematically explain the context of each issue, why you should pay attention, and how it actually affects investment or market changes, reinterpreting it from my perspective.

1. Monday – AI’s Presidential Election Theme, BQAI and AI Agreement Issues

– AI policies are rapidly emerging as core issues, including the Democratic Party-Korea Artificial Intelligence Association AI technology agreement.
– AI is establishing itself as a super strong theme based on the election. It is highly likely to be repeated continuously as policy-related stocks for the ruling and opposition presidential elections.
– Among these, the recently surged BQAI is drawing attention. The key feature of this company is its media convergence platform-based model, which interprets and services real-time news and data with AI.
– BQAI is currently adjusting after a recent price limit. Due to the advantages of materials, market capitalization, and policy/presidential election theme stocks, if the support line is confirmed, another shooting up to the double top is possible.
– If Korea succeeds in the fast follower strategy in the AI market centered on the United States and China, new global opportunities may arise.
– If government support begins in earnest in the future, attention should be paid to AI stocks, especially data/media-specialized platforms.

2. Tuesday – Robotics Rising Star ‘Now Robotics’ Emerges

– Now Robotics was recently newly listed, and its strength is providing robot manufacturing + automation solutions on a turnkey (one-stop) basis.
– Unlike simple parts manufacturers, it enhances the completeness of manufacturing site automation by integrating software and hardware.
– Growth potential is highlighted through global partnerships and entry into areas with high barriers to entry.
– The stock price has doubled in a short period after listing, and although some adjustments are possible, additional shooting can be expected if the 5-day line is supported in terms of supply and demand and valuation.
– Supply and demand cycles (timing of lock-up release for IPO shares) and differentiation in performance and solutions are key.
– Among new theme stocks, it is highly rated in the robot/AI complex theme.

3. Wednesday – AI Power Demand, Renewable Energy, Nuclear Power, and Solar Power Issues Surge Together

– The global AI boom is highlighting power shortage issues. Against this background, stock prices in the renewable energy sector, especially solar power and nuclear power, are continuing to rise.
– Nuclear power is recovering overseas orders, such as in the Czech Republic, and global energy leadership, while renewable energy (especially solar power) is providing a positive effect to Korean companies due to the US-China trade/hegemony competition.
– Focusing on HD Hyundai Energy Solutions, which has recently seen a surge. This company does not produce solar modules itself, but specializes in panel assembly and construction, and is expected to improve performance through solar installation orders.
– Hyundai’s strength in construction is expanding performance. After a temporary adjustment with a recent breakout of the box range and strong trading volume, there may be another upward trend.
– If the US-China conflict intensifies, solar module and construction/order companies may be re-evaluated as high-growth stocks.

4. Thursday – NVIDIA Collaboration, AI+Bio Drug Development Theme ‘Polaris AI Pharma’

– AI utilization is expanding in new material/drug development. Polaris AI Pharma is an official partner of NVIDIA and is attracting attention in the AI-based new drug development sector.
– It changed its name from Estech Pharma (drug synthesis and bio CDMO capabilities) to secure new growth engines for drug development and re-evaluate its valuation.
– After a sluggish period (40,000 → 4,000 won), it has recently rebounded continuously. The first breakthrough was due to the NVIDIA issue, and after that, it may plateau with the help of materials and then surge again.
– The AI+bio fusion theme is beginning to be re-evaluated in conjunction with changes in the global pharmaceutical supply chain.

5. Points to Note in the Future

– The impact of global macro changes such as AI, robots, energy, and bio on the domestic market is not just a one-time event but a mid- to long-term trend.
– At the moment when policies and global supply and demand changes are combined, sharp rises and falls appear in related theme stocks, so timing and selection of key companies are important.
– There is a high possibility that each sector will take a break after a single flow (especially newly listed stocks, AI data-related stocks, solar power performance stocks, etc.).
– It is essential to check the adjustment period after a sharp rise in stock prices, whether key materials have been exhausted, and policy changes.

< Summary >

In the 2024 economic outlook, four innovative themes are leading the market: artificial intelligence, robotics, renewable energy (especially solar and nuclear power), and AI+bio fusion.
BQAI (artificial intelligence data/media), Now Robotics (robot automation), HD Hyundai Energy Solutions (solar power construction), and Polaris AI Pharma (drug development AI bio) are representative stocks, respectively.
It is essential to check the benefits of policies and global trends, as well as high growth and sharp rise/fall characteristics, and it is necessary to focus on key stocks in the subsequent additional rise/pause sections.