Timefolio Asset Management announced Friday that its TIME Korea Plus Dividend Active exchange-traded fund (ETF) recorded the highest one-year return among all domestic dividend and monthly dividend ETFs.
According to Korea Exchange data, the TIME Korea Plus Dividend Active ETF posted a one-year return of 162.9% including dividends as of January 14. The figure outperformed all other dividend-focused ETFs listed in Korea during the same period, excluding total return products. Net assets of the fund surpassed 780 billion won ($546 million) over the same timeframe.
The strong performance stems from an agile active dividend management strategy, according to Timefolio Asset Management. Rather than limiting holdings to traditional high-dividend stocks, the fund actively incorporated market-leading semiconductor and core growth stocks such as Samsung Electronics (005930.KS) and SK hynix (000660.KS) into its portfolio. This approach generated capital gains from market leaders on top of dividend income, driving absolute returns while securing resources for future dividend payments.
The fund, which became the first domestic ETF to implement special dividends in 2024, has consistently paid monthly dividends of approximately 0.5%, providing stable cash flow to investors. At the end of last month, the fund distributed an additional 0.5% special dividend based on its operating performance, marking the third consecutive year of special dividend payments.
"We don't simply hold high-dividend stocks mechanically," said Kim Nam-ho, head of ETF management at Timefolio Asset Management. "We selectively invest in dividend stocks with clear earnings growth and proactive shareholder return policies, along with leading stocks driving Korea's economic growth."
Kim added that the fund would actively include financial stocks and holding companies expected to deliver high dividend yields through strengthened shareholder return policies in line with the government's Corporate Value-up Program.