HANARO Global Gold Mining Companies ETF Lowers Total Expense Ratio to 0.15%

NH-Amundi Asset Management announced on September 2 that it has reduced the total expense ratio of the HANARO Global Gold Mining Companies ETF from 0.45% to 0.15%.

The HANARO Global Gold Mining Companies ETF is an equity fund that invests in global gold mining companies whose performance is closely linked to gold prices. Its benchmark index is the NYSE Arca Gold Miners Index, which includes major gold mining companies in the United States, Canada, and Australia such as Newmont, Agnico Eagle Mines, and Barrick Mining.

The reduction in fees was implemented to lower the cost burden for investors and enhance long-term investment efficiency, as the ETF has delivered strong performance this year.

As of August 31, the HANARO Global Gold Mining Companies ETF had risen 66.76% year-to-date and 22.41% over the past three months. During the same periods, the KRX Gold Spot Index, which reflects domestic gold prices, increased by only 20.67% and 4.48%, respectively.

The reason why the share prices of gold mining companies have outperformed gold prices this year is that while the selling price of gold has steadily increased, mining costs have remained stable, resulting in a significant improvement in profitability.

The average gold selling price for the three leading gold mining companies-Newmont, Agnico Eagle Mines, and Barrick Mining-rose from approximately $2,911 per ounce in the first quarter of this year to $3,301 per ounce in the second quarter. In contrast, gold mining costs slightly decreased from about $1,536 per ounce to $1,522 per ounce.

NH-Amundi Asset Management expects gold mining costs to remain stable at similar levels through the end of the year. Therefore, if gold prices continue to rise, the profitability of gold mining companies is expected to expand even further.

Kim Seungcheol, Head of ETF Investments at NH-Amundi Asset Management, stated, "If you are looking to actively invest in the rise of gold prices, it is worth paying attention to gold mining companies, as their profitability is expected to increase through the end of the year." He added, "The reduction in the total expense ratio of the HANARO Global Gold Mining Companies ETF will further enhance investment efficiency."

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