Exchange Rate Volatility and ETF Yield Increase
The rise in the won-dollar exchange rate has boosted the returns of 'dollar parking ETFs' investing in dollar assets. With high U.S. interest rates and occurring exchange profits, some dollar parking ETFs have achieved about 6% returns over the past three months, reaching up to 10% over six months. This is comparable to the rise in the U.S. S&P 500 index, demonstrating better performance than domestic bond and interest-rate ETFs investing in won-denominated assets.
Experts predict that the upcoming interest rate decisions by the U.S. and Japan next month will significantly influence exchange rates and ETF yields. As the possibility of U.S. Federal Reserve rate cuts and the Bank of Japan's rate hikes grows, exchange rate volatility may increase.
Meanwhile, gold ETFs are experiencing a rebound due to high exchange rates and potential Fed rate cuts enhancing the allure of gold investments. The price of gold futures on the New York Mercantile Exchange is close to record highs, and ETFs investing in global gold mining companies have seen substantial increases. In addition, demand for gold is rising domestically, with more funds being set up. Industry insiders expect a stronger buying trend in gold, with major Wall Street financial institutions projecting continued gold price increases next year.
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