KODEX Silver Futures (H) ETF Posts 20.5% One-Month Return

Recently, silver has emerged as an alternative investment to gold. As gold prices have been moving sideways and investor sentiment toward gold has weakened, silver exchange-traded funds (ETFs) have attracted attention by delivering higher returns than gold, driven by the rise in silver prices.

On December 10, Samsung Asset Management announced that the KODEX Silver Futures (H) ETF recorded a one-month return of 20.5% (based on NAV). The returns were also reported as 38.0% over the past three months, 56.7% over six months, 76.7% over one year, and 86.3% year-to-date.

As the only silver ETF in Korea that allows investors to focus solely on silver, there has been a significant increase in inflows from individual investors. In the first ten days of this month, net purchases by individuals in the KODEX Silver Futures (H) ETF reached approximately 13.5 billion won. Since the start of the year, individual net purchases have risen sharply to 135.5 billion won.

On December 9, the price of silver surpassed 60 dollars per ounce, reaching an all-time high and continuing its upward rally. The reason silver ETFs have achieved such high returns is that the likelihood of the US Federal Reserve lowering its benchmark interest rate this month has increased, leading to a significant rise in the price of silver, which is classified as a safe haven asset.

In addition to demand for silver as a precious metal, industrial demand is also increasing. Silver has a high proportion of industrial demand, making it a direct beneficiary of the growth in advanced and eco-friendly industries such as artificial intelligence (AI) semiconductors, solar power, electric vehicles, and batteries. While gold is attractive as a traditional safe haven asset, silver offers a 'two-track' appeal as both a safe haven and an industrial commodity. Therefore, for investors who wish to hedge against inflation through safe haven assets while also preferring assets with a foundation in mid- to long-term industrial demand, investing in the KODEX Silver Futures ETF is suitable.

Kim Sunhwa, Head of ETF Management Team 2 at Samsung Asset Management, stated, "The recent rise in silver prices is not a short-term event but a trend stemming from structural changes in industrial demand," adding, "The KODEX Silver Futures ETF offers investors the opportunity to benefit from both the volatility of gold prices and the differentiated returns characteristic of industrial commodities."

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