Hantoo Asset Management's 'ACE KRX Gold Spot ETF' Individual Net Purchases Surpass 20 Billion KRW

[Asia Economy Reporter Kwon Jae-hee] Korea Investment Trust Management announced on the 2nd that the cumulative net purchase amount by individuals of the 'ACE KRX Gold Spot ETF' has surpassed 20 billion KRW. This ETF, launched in December 2021, is an exchange-traded fund (ETF) that directly invests in 'gold spot,' a representative physical safe asset.

The underlying index tracked by the ACE KRX Gold Spot ETF is the 'KRX Gold Spot Index,' calculated and published by the Korea Exchange. It is attractive as the only gold ETF that allows easy physical gold investment with a small amount and can be invested through retirement pension accounts such as personal pensions or Individual Retirement Pensions (IRP). Since its listing, individual investors have net purchased 21.9 billion KRW as of the end of February (Korea Exchange data).

Supported by individual net purchases, the net asset value of the ACE KRX Gold Spot ETF has steadily increased. After surpassing 50 billion KRW for the first time on the 6th of last month, it recorded a net asset value of 52.7 billion KRW as of the end of February. Among ETFs investing in gold over the past year since February last year, the only product with an increased net asset value is Korea Investment Trust Management's 'ACE KRX Gold Spot ETF (10.1 billion KRW → 52.7 billion KRW)'.

One advantage of the ACE KRX Gold Spot ETF, as a physical-type product, is that it can avoid rollover (monthly contract replacement) costs. Recently, the gold futures market has seen a strengthened contango phenomenon (where futures prices for longer maturities are higher than those for nearer maturities), causing high rollover costs for futures-type gold ETFs.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, "Heightened uncertainty in monetary policy and concerns about the economy have maintained risk-averse sentiment toward risky assets, and global central banks are also increasing their gold holdings. Accordingly, a favorable environment for investment in gold, a representative safe asset, is expected to be created, and the structural entrenchment of inflation will support gold demand in the mid to long term."

Meanwhile, the ACE KRX Gold Spot ETF is a performance dividend-type product, and past returns do not guarantee future returns. Depending on management results, principal loss may occur.

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