Hantoo Asset Management, ACE KRX Gold Spot ETF... "No.1 in Net Individual Purchases Among Commodity ETFs"

Individual Net Purchase Amount of 33.9 Billion KRW

Korea Investment Trust Management announced on the 24th that the ‘ACE KRX Gold Spot ETF,’ the first and only gold spot investment ETF (Exchange-Traded Fund) in Korea, recently ranked first in net individual purchase amount among commodity ETFs over the past year.

According to the Korea Exchange, as of the 23rd, the net individual purchase amount of the ACE KRX Gold Spot ETF over the past year recorded 33.9 billion KRW. From November 7, 2022, to December 10, 2023, individual investors consecutively net purchased the ACE KRX Gold Spot ETF for 44 trading days. During this period, the cumulative net purchase amount by individual investors was 12.2 billion KRW.

Supported by individual net purchases, the net asset value of the ACE KRX Gold Spot ETF has steadily increased. The total net assets of this ETF stood at 120.6 billion KRW as of the previous day. The total net assets of this product, which were in the 40 billion KRW range at the end of 2022, surpassed 100 billion KRW in December 2023, showing growth of more than double.

Compared to the average returns of commodity ETFs over the past year, it also demonstrated excellent performance. The average returns of commodity ETFs over the past 1 year and 6 months were -5.12% and -3.92%, respectively. In contrast, the ACE KRX Gold Spot ETF recorded 12.96% over the past year and 7.04% over 6 months, significantly outperforming the average returns of similar products.

The ACE KRX Gold Spot ETF was listed in December 2021 as the first ETF in Korea to invest in gold spot. It remains the only gold spot ETF product to date. Its underlying index tracks the ‘KRX Gold Spot Index,’ calculated and published by the Korea Exchange. This index reflects the net return by deducting storage costs from the price return of 1kg gold spot traded on the KRX Gold Market. Compared to gold futures ETFs, it has the advantage of no rollover costs (costs incurred during the monthly contract replacement process of futures products).

Due to the characteristics of spot ETFs, it can be invested in up to a 70% limit within retirement pensions. Among gold-related ETFs listed on the domestic securities market, the ACE KRX Gold Spot ETF is the only product available for investment through retirement pension accounts. When investing through a retirement pension account, investors can also enjoy tax credit benefits, making it noteworthy for those considering long-term investment.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, “With rising expectations for a U.S. interest rate cut recently, gold, commonly known as an alternative asset to the dollar, is once again attracting attention as an investment destination. The ACE KRX Gold Spot ETF offers the advantage of a spot ETF with no rollover costs and also provides tax benefits when invested long-term through retirement pension accounts.”

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

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