According to the Korea Exchange, as of the closing price on July 23, the net assets of the 'TIGER KRX Gold Spot ETF' reached 110.5 billion KRW. Within just one month of its listing, net assets exceeded 100 billion KRW as funds from both individual and institutional investors flocked to gold, a safe-haven asset, in response to the recent aggressive tariff policies of the United States. During this period, the net buying volume by individual investors also surpassed 40 billion KRW, establishing the ETF as a leading vehicle for gold spot investment.
The 'TIGER KRX Gold Spot ETF' is a gold spot ETF that invests in the KRX Gold Market. The KRX Gold Market incorporates high-quality gold with a purity of 99.99%, certified by Korea Minting and Security Printing Corporation, directly into the fund, and the physical gold is securely stored by the Korea Securities Depository.
The total expense ratio is 0.15% per annum, which is the lowest among gold investment ETFs listed in Korea. In particular, as a physical ETF that actually incorporates gold into the fund and stores it in a state-certified vault, it minimizes the burden of double fees and other costs. In contrast, domestic gold ETFs based on international gold prices cannot physically hold gold in the fund and instead invest indirectly by incorporating foreign-listed gold ETFs. This process requires the collection of additional fees in Korea, potentially resulting in double fees.
By minimizing gold investment costs, the 'TIGER KRX Gold Spot ETF' is expected to maximize the benefits of rising gold prices. Recently, gold prices have been on the rise as the US dollar and US Treasury yields have retreated amid uncertainties related to tariff negotiations under the Trump administration. Speculation about the possible replacement of Federal Reserve Chair Jerome Powell and a potential Fed restructuring has also heightened market tension, further increasing demand for gold.
Kim Namho, Head of Global ETF Management at Mirae Asset Global Investments, stated, "Investing in a gold spot ETF allows investors to protect their assets and seek returns amid the uncertainty stemming from upcoming trade tariff hikes. The most important factor in long-term investment is cost, and through the 'TIGER KRX Gold Spot ETF,' investors can achieve effective investment at minimal cost."
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