Korea Investment Management
Retail investors are pouring money into gold exchange-traded funds as heightened volatility in global stock markets strengthens demand for safe-haven assets. Korea Investment Management’s ACE KRX Gold Spot ETF has drawn more than 200 billion won ($145 million) in net retail buying since the start of the year, the steepest inflow among domestic commodity ETFs. The fund has recorded net buying on every trading day this month, cementing its market presence.
Net retail purchases of the ACE KRX Gold Spot ETF totaled 211.6 billion won since the start of the year as of the previous day, the Korea Exchange said on the 25th. The fund extended a 15-session streak of net buying this month, absorbing more than 65.5 billion won from retail investors. Over the past year, net retail purchases reached 1.04 trillion won. Total net inflows including institutions since the start of the year came to 693.5 billion won, ranking first among the 28 commodity ETFs listed in Korea. Net assets stand at 4.27 trillion won ($3.1 billion), solidifying its position as the country’s largest commodity ETF.
Surging gold prices drove the inflows. KRX gold prices rose 11.3% per gram this month, while the ACE KRX Gold Spot ETF returned 12.76% over the same period. Its one-year and three-year returns were 38.07% and 147.72%, respectively, bringing cumulative returns to 191.45% since its listing in December 2021.
The fund tracks the KRX Gold Spot Index and, unlike futures-based products, incurs no rollover costs from contract expiration. It can also be held without the 70% limit in retirement accounts such as defined-contribution (DC) pensions and individual retirement pensions (IRP). “Unlike futures products, there are no rollover costs, so it offers superior cost efficiency for long-term holding, and it is also an attractive option for strategic asset allocation through retirement accounts,” said Nam Yong-soo, head of the ETF division at Korea Investment Management.