NH-Amundi Asset Management said on the 26th that the net worth aggregates of the HANARO Global Gold Mining Corporations ETF topped 100 billion won on the 22nd. It grew more than 13 times from 7.7 billion won a year ago.
The HANARO Global Gold Mining Corporations ETF is a product that invests in stocks of global gold mining corporations in the United States, Canada and Australia, including Newmont, Agnico Eagle Mines and Barrick Mining.
The biggest feature of this product is that it invests in gold mining corporations, not gold futures or spot. Gold mining expenses such as labor costs and oil prices have a strong fixed-cost nature, but the gold selling price is highly volatile depending on market conditions. Therefore, when gold prices rise, mining corporations can enjoy a sharp increase in profits due to the "operating leverage effect."
The product also showed a higher return than spot gold. While the KRX Gold Spot Index, which reflects domestic gold prices, rose 79.82% over the past year, the HANARO Global Gold Mining Corporations ETF posted a return of 188.81%.
Kim Seung-cheol, head of ETF Investment Division at NH-Amundi Asset Management, said, "Recently, gold mining corporations' stock prices have risen a lot, but in a long-term time series since 2010, they remain significantly undervalued compared with gold," and added, "As the earnings improvement trend of gold mining corporations is expected to continue this year, investors must pay attention to gold mining corporations ETFs."