Hantoo Asset Management's ACE KRX Gold Spot ETF Surpasses 700 Billion KRW in Net Assets

Korea Investment Trust Management announced on the 24th that the net asset value of the ACE KRX Gold Spot Exchange-Traded Fund (ETF) has surpassed 700 billion KRW.

According to the Korea Exchange, the net asset value of the ACE KRX Gold Spot ETF was recorded at 700.7 billion KRW as of the 23rd. The increase in net asset value recorded this year is 77.8 billion KRW. The ACE KRX Gold Spot ETF also posted an annual growth rate of approximately 469% in 2024.

The ACE KRX Gold Spot ETF is a physical ETF that invests in the representative safe asset, gold. It is the only ETF in Korea that invests in physical gold. The underlying index is the KRX Gold Spot Index, calculated and published by the Korea Exchange. Due to its physical product characteristics, it can be invested up to a 70% limit in defined contribution (DC) retirement pensions and individual retirement pensions (IRP).

Net buying by individual investors continues to flow in. Individual investors have purchased the ACE KRX Gold Spot ETF for 19 consecutive trading days from the 26th of last month to the day before. Following a net purchase amount of 224.3 billion KRW on an annual basis in 2024, the net buying trend has continued this year as well.

The inflow of funds is attributed to stable performance. Since its listing in December 2021, the ACE KRX Gold Spot ETF has recorded a return of 86.25%, with increases of 48.38% and 79.30% over the past 1 year and 3 years, respectively. The 3-year return ranks first among 24 domestically listed commodity ETFs (according to ETF CHECK classification), and the 1-year return ranks second, following the ACE Gold Futures Leverage (Synthetic H) ETF (58.08%).

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, "With ongoing geopolitical uncertainties and growing concerns over the US fiscal deficit, gold demand led by central banks worldwide is expected to continue expanding." He added, "As the only domestic gold spot investment ETF and a gold ETF available in retirement pension accounts, the ACE KRX Gold Spot ETF will be a good investment option from an asset allocation perspective."

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 is possible depending on management outcomes.