New Competition and High Returns Expected in the Gold ETF Market
With the ongoing expectations of a rise in gold prices, there is a noticeable increase in investors' interest in gold ETFs. The ACE KRX Physical Gold ETF, a physical ETF without storage costs, closely tracks the returns of the gold market, offering investors the benefit of holding physical gold indirectly. The futures-based ETF, ACE Gold Futures Leverage, achieved an impressive return of 48.78%, garnering significant attention. Investment in ETFs has notably increased compared to the previous year.
The domestic physical gold ETF market is experiencing intensified competition. With Samsung Asset Management, Shinhan Asset Management, and Mirae Asset Global Investments launching new physical gold ETFs, the market dominance previously held by Korea Investment & Securities is now challenged. Samsung and Shinhan focus on the overseas gold market, while Mirae Asset targets the domestic market. As a result, investors now have more choices, diversifying their options for investment in physical gold ETF products.
Momentum and Concerns in the Quantum Computing ETF Market
The quantum computing market has recently gained significant attention, leading related ETFs to come into the spotlight. Spurred by NVIDIA CEO Jensen Huang’s remarks on the commercialization of quantum computing, Shinhan Asset Management’s 'SOL U.S. Quantum Computing TOP10' ETF has led the surge with a remarkable 2.66% return. Samsung Active Asset Management's 'KoAct Global Quantum Computing Active' and Kiwoom Investment Asset Management's 'KIWOOM U.S. Quantum Computing' ETFs also rose by 1.45% and 1.41%, respectively, with a substantial increase in trading volume.
Over the past three months, quantum computing ETFs have recorded an average return exceeding 38%, astonishing the market. The standout performance of specific ETFs is attributed to the revenue growth of U.S. companies and positive forecasts. The South Korean government's announcement of a 100 trillion won investment in AI and quantum computing is expected to further buoy the market. However, experts voice concerns about the sustainability of thematic ETFs, advising caution regarding the market's volatility.
Analysis of Hanwha Asset Management's ETF Performances and Influencing Factors
Hanwha Asset Management's 'PLUS Solar & ESS' and 'PLUS Global Nuclear Value Chain' ETFs have achieved remarkable returns of 25.08% and 26.85%, respectively, over the past month. This performance is largely attributed to shifts in energy policies both domestically and internationally, along with the ongoing U.S.-China energy rivalry. Specifically, the U.S. policy to curb Chinese solar imports has likely resulted in positive spillover effects for domestic solar companies, leading to increased attention on Hanwha's solar ETF.
Furthermore, the reorganization of the global nuclear market indicates a concentrated growth around U.S.-centered opportunities, benefiting the nuclear ETF. As demand for artificial intelligence (AI) applications rises, the need for stable power supply becomes more pronounced, thus elevating the perceived value of nuclear energy investments. Hanwha Asset Management harnesses this landscape to offer exclusive renewable energy and nuclear ETFs to investors, representing a unique avenue in the region.
The Rise of Shareholder Value-focused ETFs Amid Corporate Law Reforms
The reforms in corporate law pursued by the Lee Jae-myung administration aim to enhance shareholder value and improve corporate value. This legislative momentum is driving the growth of exchange-traded funds (ETFs) focused on themes of shareholder value and value-up. Notably, the TRUSTON Shareholder Value Active ETF recorded an impressive return of 17.60%, and there is a notable surge in the trading volume of related ETFs.
Individual investors are also aligning with this trend, increasingly focusing on the ETF market. This year, individual investors have net-purchased a total of KRW 46.1 billion worth of shareholder value-themed ETFs, underscoring their popularity. The strategy of investing in undervalued quality companies is particularly appealing, projecting expectations of high returns. If corporate law reforms lead to reinforced shareholder returns policies, these ETFs are expected to gain further momentum.
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