Hantoo Asset Management ACE KRX Gold Spot ETF Surpasses 100 Billion KRW in Net Individual Purchases Since Early This Year

Korea Investment Trust Management announced on the 19th that the net purchase amount by individual investors flowing into the ACE KRX Gold Spot Exchange-Traded Fund (ETF) has surpassed 100 billion KRW this year.

According to the Korea Exchange, the net purchase amount by individual investors flowing into the ACE KRX Gold Spot ETF exceeded 100 billion KRW as of the 12th of this year.

The ACE KRX Gold Spot ETF, launched by Korea Investment Trust Management in December 2021, is the first domestic gold spot ETF listed in Korea, tracking the KRX Gold Spot Index calculated and announced by the Korea Exchange. Since it invests directly in physical gold, it is the only gold investment ETF listed domestically that can be invested in through pension accounts.

The total inflow of funds, including net purchases by individual investors, is the highest among commodity ETFs. According to the Koscom ETF Check classification, there are a total of 24 commodity ETFs listed domestically, and the funds flowing into the ACE KRX Gold Spot ETF (181.9 billion KRW) exceed the average fund inflow (6 billion KRW) recorded by the 24 commodity ETFs during the same period.

The ACE KRX Gold Spot ETF is especially noted as a good product to include for portfolio risk diversification. The ETF’s year-to-date return is 26.60%, contrasting with the negative returns recorded by the KOSPI (-3.01%) and KOSDAQ indices (-15.39%) during the same period. This clearly reflects the nature of gold as a safe asset with low correlation to stocks. The recent 6-month and 1-year returns were also 19.89% and 33.13%, respectively, showing superior performance compared to the KOSPI and KOSDAQ.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, explained, "Starting from the September Federal Open Market Committee (FOMC) meeting, if the U.S. enters a rate-cutting cycle, major central banks are expected to increase gold demand instead of the dollar, which may weaken," adding, "This highlights the advantage of the ACE KRX Gold Spot ETF, which allows easy investment in physical gold with a small amount."

He continued, "Since the ACE KRX Gold Spot ETF is the only gold investment ETF in Korea that can be invested in through pension accounts, it is worth considering as a diversification tool to prepare for market volatility."

The ACE KRX Gold Spot ETF is a performance-distributing product, and past performance does not guarantee future results. Additionally, investors should be aware that principal loss may occur depending on management outcomes.