Unstoppable Gold Investment Fever... Aiming for Excess Returns through Mining Company Investments [What about this fund?]

[Financial News] Interest in gold investment among investors is not waning. As gold prices have risen sharply in the first half of this year, gold has emerged not only as a safe asset but also as an asset that can expect high returns. As market interest continues into the second half of the year, NH Amundi Asset Management recommended paying attention to the 'HANARO Global Gold Mining Companies' ETF, which aims for excess returns by investing in global gold mining companies rather than physical gold.
According to financial information company FnGuide on the 13th, the return of this ETF over the past three months (as of the 11th) was recorded at 8.02%. Extending the period to six months, it rises to 32.93%, and to 41.38% over a year. The current fund's setting amount is about 5.5 billion won.
This product, listed on January 16 last year, is an overseas stock-type ETF that invests in companies related to global gold mining. It tracks the 'NYSE Arca Gold Miners Index', which consists of global representative gold mining companies such as △Newmont Corporation △Agnico Eagle Mines △Barrick Gold △Franco-Nevada.
Unlike products that invest in physical gold or futures, this product has a structure that invests in companies (stocks), characterized by relatively high volatility. Therefore, during periods of rising gold prices, it can achieve higher performance than physical gold investment. Conversely, if gold prices fall, performance may be worse than the gold price.
NH Amundi Asset Management is optimistic about the possibility of further gold price increases in the second half of this year. This is due to factors stimulating gold price increases, such as expectations of interest rate cuts in the United States, continued geopolitical uncertainty, and expanded gold purchases by global central banks.
In particular, it is expected that the performance of gold mining companies will also improve significantly in this situation. It is judged that the profit of gold mining companies will increase as gold prices rise more significantly than the rate of increase in the cost of gold mining.
Kim Seung-chul, head of NH Amundi Asset Management's ETF Investment Division, said, "The average gold selling price of the three major global gold mining companies, Newmont, Agnico Eagle Mines, and Barrick Mining, rose 27% from $1,949 per ounce in 2023 to $2,483 last year, but during the same period, AISC (All-In Sustaining Cost, a comprehensive production cost indicator in gold mining) only increased by 6%," evaluating that this trend continues this year."
The HANARO Global Gold Mining Companies ETF also distributes dividends from the dividends generated from the stocks held once a year. The fund paid a dividend of 150 won per share last January.
Kim said, "This year, investing in gold mining companies is considered a more attractive option than directly investing in gold," explaining that "despite the expected performance increase due to improved mine profitability, the stock price is undervalued." He added, "If you strategically compose a portfolio by combining investments in physical gold and gold mining companies, you can more effectively benefit from the rise in gold prices.”


hippo@fnnews.com Kim Chan-mi Reporter