ACE KRX Gold Spot ETF Net Asset Value Surpasses 800 Billion Won

Korea Investment Trust Management announced on the 6th that the net asset value of ACE KRX Gold Spot ETF, the largest gold exchange-traded fund (ETF) in Korea, has surpassed 800 billion KRW.

According to the Korea Exchange, ACE KRX Gold Spot ETF recorded a net asset value of 803.5 billion KRW as of the closing price on the 4th. The net asset value based on the previous day's closing price was 858.4 billion KRW. After first exceeding 700 billion KRW with a net asset value of 700.7 billion KRW on the 23rd of last month, it increased by 102.8 billion KRW in just four days.

ACE KRX Gold Spot ETF accounted for a significant portion of the total net asset increase of domestic gold investment funds last year. According to FnGuide, the net asset increase of 13 domestic public funds (including ETFs) investing in rising gold prices was 559.6 billion KRW last year. The net asset value of ACE KRX Gold Spot ETF grew from 109.5 billion KRW at the end of 2023 to 622.8 billion KRW at the end of 2024. The ETF’s increase of 513.3 billion KRW accounted for 91.72% of the total net asset increase of gold funds.

With the expansion of global uncertainties and ACE KRX Gold Spot ETF recording high returns, net purchases by individual investors continued. The 1-month, 3-month, and 6-month returns of ACE KRX Gold Spot ETF reached 16.36%, 22.41%, and 36.67%, respectively. The 1-year and 3-year returns were also recorded at 71.29% and 108.52%, respectively.

ACE KRX Gold Spot ETF is the only and largest gold spot investment ETF in Korea, tracking the KRX Gold Spot Index announced by the Korea Exchange as its underlying index. Unlike gold futures ETFs, it does not incur rollover costs (costs associated with monthly contract replacements of futures products). Since it invests directly in gold spot, it is the only gold investment ETF listed domestically that can be invested in through pension accounts, which is a key advantage.

Nam Yong-su, Head of ETF Management at Korea Investment Trust Management, said, "Due to economic uncertainties caused by policies such as former U.S. President Donald Trump’s America First policy, demand for safe-haven assets like gold surged." He added, "As the KRW-USD exchange rate rises, the trading characteristics of gold spot create a currency-exposed structure, which seems to be popular among investors."

He continued, "ACE KRX Gold Spot ETF is the only gold ETF listed domestically that can be invested in through retirement pension accounts," and introduced, "Using retirement pension (DC, IRP), personal pension accounts, and Individual Savings Accounts (ISA) can provide tax benefits."

ACE KRX Gold Spot ETF is a performance dividend-type product, and past returns do not guarantee future returns. Additionally, principal loss may occur depending on management results, so caution is advised.