NH-Amundi Asset Management announced on 2nd that it has reduced the total fee of its exchange-traded fund (ETF) "HANARO Global Gold Mining Corporations" from the existing 0.45% to 0.15%.
This ETF invests in global gold mining corporations that are closely linked to gold prices. The underlying index is the "NYSE Arca Gold Miners Index," which includes major gold mining corporations from the U.S., Canada, and Australia, such as ▲Newmont ▲Agnico Eagle Mines ▲Barrick Mining.
NH-Amundi Asset Management explained that, with the year-to-date stock price increase of HANARO Global Gold Mining Corporations at 66.76% being high, it decided to lower fees to reduce the expense burden for investors and enhance long-term investment efficiency.
In particular, the increase rate of HANARO Global Gold Mining Corporations exceeds three times that of the KRX Gold Spot Index increase rate (20.67%) during the same period. NH-Amundi Asset Management attributed this large improvement in the profitability of mining corporations to the steady rise in gold sale prices while maintaining mining expenses.
In fact, the average gold sale price of the three representative gold mining corporations, Newmont, Agnico Eagle Mines, and Barrick Mining, rose from about $2,911 per ounce in the first quarter (January to March) to $3,301 in the second quarter (April to June). In contrast, gold mining expenses slightly decreased from about $1,536 per ounce to $1,522.
NH-Amundi Asset Management predicted that gold mining expenses would remain stable at similar levels until the end of the year. Therefore, if the upward trend in gold prices continues, the profitability of gold mining corporations is expected to further expand.
Kim Seung-cheol, head of the ETF Investment Division at NH-Amundi Asset Management, said, "In a situation where the profitability of gold mining corporations is expected to rise by the end of the year, if one wants to invest actively in rising gold prices, it is necessary to pay attention to gold mining corporations," adding, "The lowering of the total fees of the HANARO Global Gold Mining Corporations ETF will enhance investment efficiency further."