Hanhwa Investment & Securities "ACE KRX Gold Spot, No.1 in Individual Net Buying of Commodity ETFs"

ACE KRX Gold Spot ETF by Korea Investment Trust Management recorded the highest net purchase by individuals among 19 domestic commodity exchange-traded funds (ETFs) listed in Korea since the beginning of the year.

According to the Korea Exchange on the 23rd, individual investors net purchased 21.1 billion KRW worth of ACE KRX Gold Spot ETF since the beginning of the year as of the previous day. This significantly exceeds the average net purchase scale of domestic commodity ETFs during the same period (-800 million KRW). The return was also higher than the average for commodity ETFs.

The year-to-date return was 14.94%, higher than the average return of -1.44% for commodity ETFs. The returns for the recent 3 months, 6 months, and 1 year were 5.71%, 0.98%, and 14.03%, respectively. Due to inflows from individual investors and favorable returns, the total net assets reached 50.5 billion KRW, an increase of 118.27% compared to the end of last year. This showed a significant difference from the average net asset change of 1.6 billion KRW for other commodity ETFs.

ACE KRX Gold Spot ETF, listed in December 2021, is the first and only gold spot ETF in Korea. Its underlying index is the 'KRX Gold Spot Index' calculated and announced by the Korea Exchange. This index is calculated by reflecting the net return after deducting storage costs from the 1 kg gold spot price return traded on the KRX gold market.

Due to the nature of spot ETFs, rollover costs (new futures contracts upon expiration of futures contracts) can be avoided. In addition to individual pension accounts, it is the only gold-related ETF listed domestically that can be invested in through defined contribution (DC) and individual retirement pension (IRP) accounts. Investing through retirement pension accounts offers tax deduction benefits, making it attractive for long-term investment.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, "The popularity of ACE KRX Gold Spot ETF is due to increased financial market uncertainty following consecutive failures of regional banks in the U.S. earlier this year and the spread of international tensions originating from the Middle East," emphasizing, "It is the only product among domestic gold-related ETFs that can be invested in through retirement pension accounts."

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