Despite US Stock Market Plunge, KIMTU Asset Management's Gold Spot ETF Achieves 10% Profit... Performance Draws Attention

KINDEX KRX Gold Spot ETF Return 10.16%

[Asia Economy Reporter Hwang Yoon-joo] Korea Investment Trust Management's gold spot exchange-traded fund (ETF) posted double-digit returns despite volatile stock markets.

Korea Investment Trust Management announced on the 11th that three ETFs investing in gold spot, high dividend stocks, and U.S. Wide Moat value stocks outperformed the weak market since the beginning of the year.

According to financial information provider FnGuide, the ‘KINDEX KRX Gold Spot ETF’ recorded returns of 0.68% over the past month, 7.89% over three months, and 10.16% year-to-date as of the 10th. Considering that the S&P 500 index fell 11.31% in the past month, 12.99% over three months, and sharply dropped 16.73% year-to-date, this is a remarkable performance.

The ‘KINDEX KRX Gold Spot ETF’ benefits from rising gold prices and a strong U.S. dollar. This product, which tracks the KRX Gold Spot Index, reflects both international gold prices and the USD/KRW exchange rate in its daily performance, effectively investing simultaneously in gold and USD.

As a spot ETF rather than a futures ETF, it can be invested in through retirement pension accounts. Gold is a representative safe-haven asset and an inflation hedge, gaining attention in this year’s market amid increased financial market uncertainty.

The ‘KINDEX U.S. High Dividend S&P ETF’ posted returns of -1.0%, 1.17%, and -0.35% over the same periods, respectively. It selectively invests in companies with not only high dividend yields (=dividends/stock price) but also consistent dividend growth based on earnings growth, allowing investors to enjoy both dividend income and growth effects.

The ‘KINDEX U.S. Wide Moat Value Stock ETF’ also performed well in the weak market, posting returns of -6.52%, -5.24%, and -6.92% over the same periods. This ETF invests in U.S. companies with sustainable long-term competitive advantages and undervaluation appeal.

Jung Sung-in, head of the ETF Strategy Department at Korea Investment Trust Management, said, “As financial market volatility increases, market interest in products expected to offer stability and defense is rising. The investment appeal of gold and the dollar, which are representative safe-haven assets, high dividend stocks that can secure investment safety margins, and Wide Moat value stocks with strong market dominance and price competitiveness will be further highlighted in the phase where the U.S. base rate hikes accelerate.”

This content was produced with the assistance of AI translation services.