Widening Yield Gap in Domestic Gold ETFs
The yield gap between ETFs tracking domestic and international gold prices has expanded to about 5 percentage points. This difference is attributed to the disappearance of the 'Kimchi Premium', allowing international gold ETFs to outperform their domestic counterparts.
KODEX Active Gold and SOL International Gold ETFs saw increases of 25.38% and 25.18% respectively, whereas ACE KRX Gold Spot and TIGER KRX Gold Spot ETFs only managed gains of approximately 20.73%. As a result, investors should note that domestic gold prices are not fully mirroring international trends.
From a long-term investment perspective, international gold ETFs may offer more stability, making it crucial to assess the presence of any premiums. Additionally, increased volatility in gold prices due to geopolitical uncertainties necessitates a cautious approach by investors.
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'Kimchi Premium' Subsides, Divergence in Domestic Gold ETF ReturnsThe so-called 'Kimchi Premium', where domestic gold prices were higher than international rates, has recently vanished rapidly, causing a widening gap in returns among gold ETFs. There is a disparity in performance between ETFs that track international gold prices and those managed based on domestic gold prices.
“Gold prices are up, why did my ETF rise less?”… Emotions mixed as 'kimchi premium' disappears for gold ETFs [Investment360] - Herald EconomyAccording to Koscom ETF Check on the 5th, 'KODEX Gold Active', which invests in international gold spot and related financial products, rose 25.38% this year until the 3rd, as domestic gold prices surpassed international rates.
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