According to KOSCOM's ETF check on the 3rd, as of that day, 'KODEX Bank' recorded a three-month return of 15.76%, ranking among the top five in returns among domestically listed ETFs. 'TIGER Bank,' which tracks the same KRX Bank Index, also showed a return of 15.57%.
High-dividend ETFs such as 'SOL Financial Holding Plus High Dividend' (12.82%) and 'TIGER Bank High Dividend Plus TOP10' (12.59%) also secured the 11th and 12th positions, respectively. Among the top 10 holdings by weight in these products, seven and nine are banks, respectively.
Banks are recognized as representative beneficiaries of high interest rates, with their stock prices on an upward trend. The Bank of Korea raised its base rate in August following a hike in July, leading to an improvement in NIM (net interest margin), the core profitability indicator for banks, which could increase interest income. There is also expectation that the loan-deposit spread (the difference between loan and deposit rates) will widen as market interest rates, including government bond yields, rise.
Projections suggest that the environment favorable to bank stocks will continue, as interest rates are unlikely to fall easily in the near term. Kang Song-cheol, a researcher at Eugene Investment & Securities, stated, "Not only have international oil prices risen due to the Middle East war, but major countries including South Korea are actively deploying fiscal stimulus." He added, "Furthermore, big tech companies are issuing bonds to raise funds for AI (artificial intelligence) investments. To reverse this trend, they would need to halt AI investments, which is unlikely."
There is also an assessment that bank stocks have gained appeal as defensive stocks supported by solid earnings in volatile market conditions.
Since July, as the concentration on semiconductors has eased and sector rotation has begun to spread, returns for bank stocks have stood out. In fact, the combined net profit of the five major financial holding companies—KB, Shinhan, Hana, Woori, and NH Nonghyup—for the first half of this year totaled 13.1183 trillion won, with four of them (excluding Woori) achieving record-breaking earnings.
Aggressive dividends from bank stocks serve as an additional source of income, earning bonus points for investors. Financial holding companies are recognized as the most proactive in shareholder returns, aligning with the government's value-up program policy and characterized by a high proportion of foreign investment. 'KODEX Bank,' 'SOL Financial Holding Plus High Dividend,' and 'TIGER Bank High Dividend Plus TOP10' ETFs are all managed as monthly dividend products.
On the 3rd, when the KOSPI index closed slightly lower amid high volatility, bank stocks showed strength. KB Financial Group (KB Financial) rose 5.20% to 177,900 won, while Hana Financial Group gained 3.41% to 139,500 won.
Experts advise investing in bank stock ETFs that offer both benefits from high interest rates and the dual advantages of earnings and dividends as defensive stocks. Kim Jeong-hyun, head of the ETF group at Shinhan Asset Management, said, "If semiconductors have served as the offensive arm of portfolios, banks and financial holding company ETFs can act as defensive assets to secure relative stability and reduce volatility."
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