Samsung Asset Management to list KODEX US Dividend Dow Jones Active ETF on Tuesday

Samsung Asset Management is launching an actively managed ETF that combines the steady dividend-growth focus of the US Dividend Dow Jones index with flexible market responsiveness.

The company announced Monday that it will list the KODEX US Dividend Dow Jones Active ETF on Tuesday. The product builds on the stable dividend-growth foundation of the existing US Dividend Dow Jones index, adding a fund manager's qualitative analysis and an on-demand rebalancing strategy to pursue excess returns. Distributions are scheduled to be paid at the end of each month.

The US Dividend Dow Jones index has delivered strong performance even during market downturns, but critics have long pointed to its fixed annual rebalancing cycle as a drawback. The index also selects stocks solely on quantitative criteria — including 10 consecutive years of dividend payments, dividend yield, dividend growth rate and return on equity — a methodology faulted for potentially selling off "winning companies" driving growth too early, or falling into so-called dividend traps.

To address these shortcomings, the KODEX US Dividend Dow Jones Active ETF aims to launch with a concentrated portfolio of roughly 70 core blue-chip stocks drawn from the underlying index, managed actively from the outset. The fund will conduct on-demand rebalancing by closely examining changes in earnings estimates and structural growth potential, with the goal of maximizing returns.

Stocks whose share prices are rising — so-called winning positions — will be held continuously rather than sold, while holdings showing signs of fundamental deterioration, or dividend traps, will be adjusted at any time without waiting for the scheduled annual rebalancing.

"If the US Dividend Dow Jones index is a well-made map updated once a year, this product adds smart navigation on top of it," said Samsung Asset Management fund manager Han Dong-hoon. "By adding flexibility to a stable foundation, it will serve as a reliable alternative for investors who want both the security and the agility of dividend investing."

Samsung Asset Management recently listed the KODEX US AI Agent Active ETF, which invests in US companies involved in AI agents. The fund tracks the Indxx US AI Agents index, with Meta, Palantir and Palo Alto Networks together accounting for roughly 47 percent of the top three holdings as of this month.