Kiwoom US High-Dividend AI Tech ETF - 70% Dividend Stocks + 30% Big Tech Strategy

🎯 An Alternative to SCHD: Kiwoom US High-Dividend AI Tech

For those considering US high-dividend ETF investments, the first ETF worth comparing to SCHD is Kiwoom US High-Dividend AI Tech.

The core strategy is simple:

• 70% US high-dividend stocks
• 30% US Big Tech

A structure that lets you invest in both dividend stocks and growth stocks at once.

📊 Portfolio Construction

US AI Tech (30%)

The Big Tech names we all know well. Composed of 10 stocks including Apple, Microsoft, NVIDIA, etc.

US High-Dividend Portfolio (70%)

Stock selection differs from SCHD.

Category	SCHD	Kiwoom High-Div AI Tech
Selection Criteria	Dividend Growth	Dividend Yield
Momentum Filter	None	Excludes bottom 25%
Number of Stocks	~100	20 stocks

Stocks are selected based on dividend yield rather than dividend growth. To exclude cases where yields are high due to falling stock prices, bottom 25% momentum stocks are excluded.

Final portfolio: 10 Big Tech + 20 US High-Dividend = 30 stocks total

💡 The Power of Auto-Rebalancing

"Why not just buy 70% dividend stocks and 30% Big Tech separately?"

This question comes up a lot. Monthly automatic rebalancing to maintain the 7:3 ratio is a structurally huge advantage.

Why Is Auto-Rebalancing Important?

In the medium to long term, Big Tech will likely outperform high-dividend stocks. This naturally tilts the portfolio toward Big Tech.

Auto-rebalancing results in:

• 📈 Selling Big Tech
• 💰 Monthly increasing high-dividend stock allocation

This is not easy to do manually, and the direct and indirect costs of trading are significant.

⚠️ Cause of Early Underperformance

Kiwoom US High-Dividend AI Tech received decent inflows at listing. Those who bought immediately may have been puzzled by the poor early performance.

Reason: Financial Stocks

The US high-dividend portfolio has relatively high financial sector exposure. On October 16, concerns about US regional bank failures surfaced, causing a significant correction in US bank stocks.

Index/ETF	Daily Decline
S&P 500 Financial	-3%
KRE (US Regional Banks ETF)	Over -6%

S&P 500 was rising while Kiwoom US High-Dividend AI Tech was falling—due to financial stock exposure.

📈 Post-Listing Performance

Still, post-listing performance shows +4.24%.

While the listing timing was somewhat unfortunate in the short term, from a long-term perspective:

• ✅ Strategy combining Big Tech and high-dividend stocks
• ✅ Monthly auto-rebalancing
• ✅ Balance between growth and stability

I think it's a solid ETF concept.

🎯 Recommended For

1. Those uncomfortable investing only in SCHD

   • Adding Big Tech to dividend stocks for growth potential

2. Those finding it cumbersome to manage Big Tech and dividend stocks separately

   • Convenient management with auto-rebalancing

3. Those wanting yield-based high-dividend stocks

   • Different approach from SCHD (dividend growth)

📌 Investment Considerations

• High financial sector weight makes it sensitive to financial sector issues
• Small AUM due to recent listing
• 30% Big Tech means tech stock volatility exposure

However, the high-dividend + Big Tech combination can create a more balanced portfolio than investing only in SCHD.

In the next article, I'll introduce another alternative: the RISE US High-Dividend Dow Jones Top 10 ETF.