Diversification in the ETF Market and Investment Directions Amid Geopolitical Risks
Mirae Asset Management has launched the TIGER KRX Gold Bullion ETF, aiming to provide long-term investment opportunities in gold. This ETF is cost-effective with a low fee of 0.15%, making it more competitive than other products. The recent surge in gold prices has resolved the premium issue within the domestic gold market.
Amid escalating geopolitical risks in the Middle East, ETFs related to oil and gold are showing significant returns. The KODEX WTI Crude Oil Futures has surged about 25% in the last month, with the TIGER Crude Oil Futures Enhanced rising 24%. International oil prices have risen 13% due to the potential military conflict between Israel and Iran. This uncertainty heightens the likelihood of continued strength in oil and gold ETFs.
In the Seoul forex market, geopolitical instability in the Middle East has caused the USD/KRW exchange rate to rise, with safe-haven assets like the dollar and gold gaining traction. The potential blockade of the Strait of Hormuz by Iran has further driven up international oil prices, while domestic dollar-related ETFs have rebounded.
Meanwhile, KB Asset Management has introduced the RISE Short-term Special Bank Bond Active ETF, investing in ultra-short-term AAA-rated special bank bonds issued by domestic financial institutions. With an average duration of 0.25%, this ETF is suitable for short-term liquidity management, providing high stability and additional interest income compared to government bonds. It does not affect capital soundness, making it favorable for financial institutions' capital management.
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Middle East Risk Spreads...Will Oil and Gold ETFs Continue to Strengthen? - Metro NewspaperAs geopolitical risks from the Middle East escalate, ETFs investing in oil and gold are showing high returns. The market predicts that given the difficulty in quickly resolving Middle Eastern tensions, the strong trend of these related ETFs is likely to continue for the time being. According to the Korea Exchange on the 23rd.
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Will Middle East Escalation Concerns Cause a Rise in Dollar & Gold Safe-Haven ETFs Again? - Money TodayAs the US attacks Iran, geopolitical risks originating from the Middle East are expanding. Both domestic and international financial markets are fluctuating, with the prices of traditional safe-haven assets like the dollar and gold showing strength. The securities industry believes that while volatility due to Middle Eastern news will persist for the time being, the likelihood of the conflict dragging on or escalating into a full-scale war is not high. Prices for international oil and gold-related ETFs, which surged after market opening, also...
KB Asset Management Launches High-Quality Ultra-Short-Term Corporate Bank Bond ETF - Money TodayKB Asset Management will introduce the country's first ETF (Exchange-Traded Fund) that invests in ultra-short-term AAA-rated bonds issued by special banks. KB Asset Management announced on the 23rd it will launch the 'RISE Short-Term Special Bank Bond Active' ETF on the 24th. This product primarily invests in bonds issued by special banks such as KDB Industrial Bank, Korea Export-Import Bank, and Small and Medium Business Bank (IBK Industrial Bank). Focused on ultra-short-term bonds ...
Gold for Long-Term Upward Investment... Low Costs EssentialMirae Asset Global Investments is targeting the gold market with an exchange-traded fund (ETF) suitable for long-term investment perspectives in physical gold. Amid rising investment demand for gold, a representative safe asset, due to recent intensifications in Middle Eastern conflicts, they highlighted that gold prices historically trend upwards in the long term, similar to stocks. On the 23rd, Mirae Asset held a press conference at the Mirae Asset Center One Building in Jung-gu, Seoul, introducing the TIGER KRX Gold Bullion ETF, which is set to be listed the next day (24th). Mirae Asset is considered a latecomer in entering the gold ETF market. This release follows their introduction of the TIGER Total World Stock Active ETF on the same day as a 'surprise' launch.