ACE KRX Gold Spot ETF Ranks First in Net Purchases by Individual Investors Among Commodity ETFs

Korea Investment Management announced on June 10 that, so far this year, the net purchase amount by individual investors in the ACE KRX Gold Spot ETF has ranked first among commodity ETFs.

According to the Korea Exchange, as of June 9, individual investors had made net purchases totaling 280.6 billion won in the ACE KRX Gold Spot ETF this year. During the same period, this was the largest net purchase amount among the 24 commodity ETFs listed in Korea. The average net purchase amount by individuals for domestically listed commodity ETFs was 12 billion won, with the total reaching 287.2 billion won. As a result, the ACE KRX Gold Spot ETF accounted for approximately 98% of the total net purchases by individual investors in domestic commodity ETFs.

The ACE KRX Gold Spot ETF, launched by Korea Investment Management in 2021, is Korea’s first gold spot ETF. It tracks the "KRX Gold Spot Index," which is calculated and published by the Korea Exchange as its underlying index. This index reflects the net return of the gold spot market after deducting storage costs from the price return. Since it is a won-denominated index, its performance also incorporates the exchange rate between the Korean won and the US dollar (USD).

Since its launch, the ACE KRX Gold Spot ETF has grown into the largest gold ETF in Korea, fueled by strong interest from individual investors. Its net asset value increased from 622.8 billion won at the end of last year to 1.2656 trillion won as of the previous day.

The strong interest from individual investors is attributed both to its outstanding returns and to the unique features of spot ETFs. According to FnGuide, the ETF recorded one-year and three-year returns of 39.77% and 91.80%, respectively, ranking first among domestic commodity ETFs during the same period, excluding leveraged ETFs. The only product with higher returns than the ACE KRX Gold Spot ETF was the ACE Gold Futures Leverage (Synthetic) ETF, which is a gold futures leverage product. Since its listing, the cumulative return of the ACE KRX Gold Spot ETF has reached 107.07%.

The unique characteristics of spot ETFs are also clear. Because it directly tracks the gold spot market price return, excluding storage costs, it provides an effect most similar to actually holding physical gold. Due to the nature of spot products, the ACE KRX Gold Spot ETF can also be invested in through retirement pension accounts. Utilizing a retirement pension account offers the advantage of tax deductions for long-term investments. Additionally, unlike futures-based ETFs, there are no rollover costs (costs incurred when rolling over futures contracts to the next month).

Nam Yongsoo, Head of ETF Management at Korea Investment Management, explained, "As the largest gold ETF in Korea, the ACE KRX Gold Spot ETF continues to attract strong interest from individual investors this year due to its consistently stable returns and its unique characteristics." He added, "Unlike fund-of-funds or futures-based ETFs, it provides an effect most similar to holding physical gold, while also offering the advantages of stability, liquidity, and accessibility compared to physical gold."

The ACE KRX Gold Spot ETF is a performance-based product, and past performance does not guarantee future results. In addition, principal loss may occur depending on investment results.

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