Solactive has announced its first collaboration with Hana Asset Management. The Solactive U.S. Dividend 30 Index aims to address the increasing demand for resilient equity strategies amidst uncertain market conditions.
Solactive writes that recently, income-generating strategies like dividend investing has risen to popularity again for its stability and lower volatility. “This strategy typically includes investing in companies with consistent dividend payouts which help to safeguard investors’ purchasing power over time, and they tend to weather economic downturns more effectively due to their robust financial foundations.
“Moreover, a regular income stream can be important to various kinds of investors, for example when planning for liquidity requirements during retirement. These factors highlight the potential of dividend stocks, positioning them as attractive opportunities for long-term investments.”
The Solactive U.S. Dividend 30 Index comprises the top 30 US listed stocks with a consistent track record of dividend growth, payouts, and superior quality characteristics – such as strong profitability and low leverage. The selection process includes the application of minimum tradability filters, exclusion of REITs, and requirement of at least 10 consecutive years of dividend payments. Several quality factors, including cash flow to debt, return on equity (ROE), indicated dividend yield, and dividend payment growth, are employed to construct a final composite score to rank securities. The 30 securities with the highest final scores are selected and weighted by Free Float Market Capitalisation, with sector weights capped at 35 per cent and individual security weights limited to 5 per cent.
The ETF is listed on the Korean Stock Exchange with the ticker code “0004G0.KS”.
Timo Pfeiffer, CMO at Solactive, says: “We are very pleased to announce the first collaboration with Hana on the back of the Solactive U.S. Dividend 30 Index. This development reflects our dedication to providing well-considered investment solutions that align with evolving investor preferences. By combining consistent dividend distribution and other key financial metrics, this index offers a compelling approach to navigate market volatility while seeking competitive yields and returns.”
Taewoo Kim, CEO at Hana Asset Management, says: “As the demand for dividend investments for retirement savings will further expand in the future, dividend investment strategies will require continuous innovation and high standards. In this light, we are pleased to launch the 1Q U.S. Dividend 30 ETF with Solactive, which provides an improved US dividend stock strategy.”
