Korea Exchange Announces KRX Gold Spot Leverage Index

[Asia Economy Reporter Minji Lee] The Korea Exchange announced on the 17th that it plans to release the 'KRX Gold Spot Leverage Index,' a strategic index utilizing the KRX Gold Spot Index, on the 22nd.

The KRX Gold Spot Index tracks the price fluctuations of the KRX gold market. Currently, one ETF and four ETNs based on this index are listed on the KOSPI market. The KRX Gold Spot Leverage Index aims to track twice the returns of the Gold Spot Index.

Amid growing investor interest in safe-haven assets, this index reflects the demand to maximize returns from gold spot investments. While the leverage effect can lead to superior performance compared to the original index, it also increases losses in the opposite scenario.

The exchange stated, “With the future listing of products based on the Gold Spot Leverage Index, we expect to meet the demand for gold spot investments and contribute to the revitalization of the domestic gold market.”