'HANARO Global Gold Mining Companies' ETF Ranks First in One-Month Return Among Gold-Related ETFs

1-Month Return Reaches 18.6%
Declining Oil Prices Ease Cost Burdens
Profitability Highlighted as Gold Prices Rebound

NH-Amundi Asset Management announced on August 20 that its "HANARO Global Gold Mining Companies" ETF recorded the highest one-month return among domestically listed gold-related ETFs.

According to the Korea Exchange, as of August 18, the one-month return for the HANARO Global Gold Mining Companies ETF stood at 18.59%. This is the highest among gold-related ETFs listed in Korea. The performance also surpasses the international gold price increase rate of 10.73% during the same period.

The HANARO Global Gold Mining Companies ETF invests in global gold mining company stocks such as Newmont, Agnico Eagle Mines, and Barrick Mining. Since it invests in the 'stocks' of mining companies rather than gold futures or physical gold, returns are maximized during periods of rising gold prices. While mining companies face mostly fixed costs such as labor and energy expenses, the selling price of gold fluctuates with market conditions. As a result, when gold prices rise, the leverage effect increases the magnitude of profit growth.

Additionally, gold mining companies have recently seen their cost burdens decrease. As these companies rely heavily on operating large equipment, their cost structure is linked to oil prices, which have stabilized as the conflict between the United States and Iran has entered a lull. With selling prices rising and production costs falling, analysts say the profitability of gold miners is improving at a rapid pace.

Especially this month, gold prices have been climbing steeply. The weakening dollar is cited as a key factor. Since international gold prices are quoted in dollars, a decline in the value of the dollar typically pushes gold prices higher.

China’s demand for gold also provides price support. Last month, the People’s Bank of China officially purchased an additional 20 tons of gold, marking the largest monthly purchase since October 2023.

Kim Seungcheol, Head of ETF Investment at NH-Amundi Asset Management, stated, "Structural changes in the gold market such as global geopolitical fragmentation, a weaker dollar, and increased central bank gold buying are continuing. Investing in gold mining companies offers the benefits of gold’s safe-haven value and the potential for excess returns through leverage, making it a valuable opportunity to maximize portfolio profitability."

This content was produced with the assistance of AI translation services.