HANARO Global Gold Mining Companies ETF Rises 42% This Year

NH-Amundi Asset Management announced on July 10 that the 'HANARO Global Gold Mining Companies ETF' has recorded returns significantly outperforming both domestic and international gold prices.

According to Koscom ETF Check, as of July 8, the year-to-date return of the HANARO Global Gold Mining Companies ETF stands at 42.09%. During the same period, international and domestic gold prices rose by 25.59% and 16.47%, respectively, showing a clear gap with the ETF's performance.

The HANARO Global Gold Mining Companies ETF is an equity fund that invests in global gold mining companies whose performance is closely linked to gold prices. Its benchmark index is the 'NYSE Arca Gold Miners Index,' which includes companies such as Newmont, Agnico Eagle Mines, and Barrick Mining.

When gold prices rise and mining costs do not increase significantly, the profitability of mining companies improves. As a result, the stock prices of mining companies can rise more than the price of gold itself. This explains why the HANARO Global Gold Mining Companies ETF has been able to deliver better performance than direct investment in gold.

The profitability of gold mining companies is expected to remain strong in the second half of the year. The AISC (All-In Sustaining Cost), which represents gold mining costs, has remained largely stable so far this year.

According to NH-Amundi Asset Management, the average gold selling price for Newmont, Agnico Eagle Mines, and Barrick Mining rose by 27%, from $1,949 per ounce in 2023 to $2,483 per ounce last year. During the same period, AISC increased by only 6%. In the first quarter of this year, while the average gold selling price further increased by 17% to $2,893, AISC rose by just 10%, leading to even higher profitability.

Gold prices are likely to continue their upward trend in the second half of the year. Factors stimulating gold demand remain, such as expectations of a U.S. interest rate cut, ongoing geopolitical uncertainties, and increased gold purchases by global central banks. On the other hand, the likelihood of a sharp rise in mining costs is low, so the profitability of gold mining companies could improve even further.

As an equity fund, the HANARO Global Gold Mining Companies ETF can also provide distributions from dividend resources. In January, it paid a distribution of 150 won per share.

Kim Seungcheol, Head of ETF Investments at NH-Amundi Asset Management, said, "The profitability of gold mining companies is expected to rise this year, so investors who wish to actively invest in the rise of gold prices should pay attention to gold mining companies. The HANARO Global Gold Mining Companies ETF is a product that offers the advantages of both gold investment and equity investment, allowing investors to expect not only capital gains but also distributions."