The Rise of Gold and Bond-related ETFs as Safe Assets
Recently, the net assets of the ACE Gold Spot ETF have surpassed 1 trillion KRW, signaling a significant increase in demand for gold and bond-related ETFs as safe assets. The net assets of the ACE KRX Gold Spot ETF have increased by 60.86% compared to the beginning of the year, with daily trading volume also experiencing a substantial rise. This trend is attributed to the growing economic uncertainty under the Trump administration, which has driven a preference for safe assets like gold.
Korea Investment Management and Shinhan Asset Management are responding to this increased demand by preparing new ETF products. Notably, Shinhan Asset Management's SOL Mid-Term Corporate Bond (A-Rated) Active ETF invests in high-quality corporate bonds to offer both high interest and capital gains, with an expected return rate of 3.39% per annum, making it attractive to investors. The ETF also boasts high liquidity, making it suitable for management within individual comprehensive asset management accounts and retirement pensions. This serves as an alternative to maximize returns in the current interest rate environment.
Related News
Selective Investment in High-Quality Corporate Bonds Rated A- or Higher... Expect High Interest and Capital Gains [ETF Zoom-in]Securities > Domestic Stock Market News: Amidst increasing uncertainties in domestic and international financial markets following the inauguration of U.S. President Donald Trump, there's an opportunity to manage idle funds in the short term...
"Safe Assets Are the Way to Go"... Korea Investment Management's Gold and Bond ETFs Show Progress - Market EconomyThere is a growing demand for investments in safe assets. This is due to economic uncertainties from the U.S., including tariff risks based on President Trump's America-first policies. Among assets, there is a noticeable increase in demand for 'gold' and 'bonds'. ETFs (Exchange Traded Funds) related to safe assets are gaining attention as they offer a way to pursue higher returns while reducing volatility alongside physical investments. Particularly, Korea Investment Management's ACE ETF is prominent in both gold and bond-related ETFs. According to the Korea Exchange Information Data System, the net asset value of Korea Investment Management's ACE KRX Gold Spot ETF stood at 1.9 trillion won as of the 4th.