Changes in Taxation of Overseas TR ETFs and Rising Demand for Monthly Distribution ETFs
A recent change in the tax enforcement regulations by the Ministry of Strategy and Finance has impacted the asset management sector, focusing on the taxation of overseas stock-type TR ETFs. The amended regulations now require the allocation of interest and dividend income annually, altering the previous tax-efficient operation. Samsung Asset Management has responded swiftly by changing the product names and restructuring to a quarterly distribution, reflecting a policy to address tax savings issues within TR ETFs. This change represents an effort to align TR ETFs with common ETFs, yet is expected to significantly impact the TR ETF market in the long term.
Meanwhile, the growing interest in pension investments has driven increased demand for monthly distribution overseas ETFs. These ETFs provide monthly cash flow, offering a stable source of income, making them attractive to the 2030 demographic for portfolio support and the 4050 demographic as a retirement strategy. Investors using monthly distribution ETFs in pension accounts should be mindful of the tax benefits and withdrawal sequence, as exceeding the annual limits could result in losing tax incentives. Thus, careful planning and understanding are crucial.
Related News
Monthly Dividend 'Monthly Distribution ETF', Investment Strategies Should Differ by Generation - E Today(Source=Mirae Asset Management) As interest in pension investments is higher than ever, the demand for 'monthly distribution exchange-traded funds (ETFs)' based on overseas assets is rapidly growing
Government Takes Tax-saving Measures on Overseas Stock-type TR ETFs…Industry 'On Edge' - Seoul Economic DailyEconomy & Finance > Policy News: The asset management industry was abuzz after the Ministry of Economy and Finance announced an amendment to the enforcement decree of the tax law on the 16th. Overseas stock-type Total Return Exchange Traded Funds (TR ETF...