Shinhan Asset Management Lowers SOL International Gold ETF Total Expense Ratio to 0.05% Per Year

Shinhan Asset Management announced on October 31 that it will lower the total expense ratio for the SOL International Gold ETF from the previous annual rate of 0.3% to 0.05% per year.

The SOL International Gold ETF is the first product in Korea to directly track international spot gold prices, reflecting global gold prices without being affected by domestic supply and demand factors such as the so-called "kimchi premium," which can cause price distortions. Since there is no need to roll over futures contracts, investors are not exposed to rollover costs or the risk of reduced returns caused by a contango structure, where the price of far-month contracts is higher than that of near-month contracts, as seen in gold futures ETFs. Its advantage lies in its ability to track international gold prices honestly and efficiently.

An official from Shinhan Asset Management stated, "Investor interest in gold investment through ETFs is growing, so we have reduced the total expense ratio to the level of benchmark index ETFs to maximize long-term investment efficiency." The official added, "If you include the SOL International Gold ETF in a long-term investment portfolio such as a pension account, especially in a phase where gold prices are expected to continue rising, it will serve as an honest and efficient way to track international gold prices."

Recently, with gold price volatility increasing, the "kimchi premium" phenomenon-where domestic gold prices exceed international prices by more than 10%-has appeared, leading to increased demand for the SOL International Gold ETF, which directly reflects international gold prices.

As of the end of September, net assets stood at 13.7 billion won, but as of the closing price on the 30th, they had increased more than sixfold to 83.2 billion won in just one month.

Since its listing in April this year, the ETF has distributed an average of 38 won per share every month. The annualized dividend yield was approximately 4.08%.

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