Shinhan Asset Management said on the 31st it will cut the total fee for the "SOL International Gold" exchange-traded fund (ETF) to 0.05% a year from 0.3% a year. The reduced fee takes effect immediately as of the day.
The "SOL International Gold" ETF directly tracks international spot gold prices, reflecting global gold quotes and staying free from price distortions caused by domestic supply-and-demand factors such as the "kimchi premium."
In addition, because there is no need to roll futures contracts, there is no rollover expense seen in gold futures ETFs or the risk of return erosion from a contango structure in which deferred-month prices are higher than near-month prices. Accordingly, international gold prices can be tracked more faithfully and efficiently, Shinhan Asset Management noted.
A Shinhan Asset Management official said, "Investor interest in gold investment using ETFs is rising, so we lowered the total fee to the level of benchmark index ETFs to maximize long-term investment efficiency."