Solactive and KB Asset Management Partner for the First Time with ETF Launch Tracking Realty Income Index

Solactive is delighted to announce KB Asset Management’s introduction of the KB KBSTAR Global Realty Income ETF in Korea, tracking the Solactive Global Realty Income Index, marking the initiation of partnership and further expanding Solactive’s presence in the region.

The Solactive Global Realty Income Index comprises REIT securities known for their appealing dividend payments. Notably, Realty Income Corp and the Macquarie Korean Infrastructure Fund (MKIF) are included as fixed components. Both constituents provide steady income streams to investors in the form of dividends and/or over-distribution of profits. Realty Income Corp is the largest net lease REIT in the market, providing monthly dividend distributions, while MKIF invests in landmark infrastructure assets of Korea. The remaining eight securities are chosen from the Industrial and Warehouse Equity REITs, Data Center Equity REITs, Manufactured Homes Equity REITs, and Tower Equity REITs sectors based on their dividend growth, offering strategic exposure to the long-term prospects of the real estate market.

The ETF listed on the Korean Stock Exchange on 20 February under the ticker code 475380.KS.

Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We highly appreciate the trust KB places in our ability to construct a REITs-focused index meeting investors’ needs. With this product, investors can gain access to both consistent dividends and the performance of specific REIT sectors, while also achieving diversification within the listed real estate and infrastructure space.”

Soojin Lee, Head of ETF Product Division at KB Asset Management, said: “We are pleased to commence a partnership with Solactive with the KBSTAR Global Realty Income ETF. This fund focuses on investing in two key stocks favoured by local retail investors – Realty Income Corp and Macquarie Korean Infrastructure Fund, and REITs that have demonstrated stable income growth. We believe this will allow investors to participate in capital appreciation from the underlying REITs as well as provide a steady income stream through dividends. Also, local investors can invest via their pension fund accounts, benefiting from tax savings through long-term investments.”