Shinhan Asset Management announced the listing of the ‘SOL International Gold Exchange Traded Fund (ETF)’ on the securities market on the 17th. This new ETF directly tracks 100% of the international gold spot price, marking the first gold-related ETF on the domestic market to do so.
Unlike existing gold ETFs that track either domestic gold spot prices or international gold futures, the SOL International Gold ETF follows the LBMA (London Bullion Market Association) gold spot price—recognized as the global standard. The London gold market accounts for about 50% of the total nominal value of worldwide gold trading.
Kim Jeong-hyun, head of Shinhan’s ETF business division, highlighted structural demand factors such as geopolitical risks, central banks’ increased gold purchases, and the global financial environment as drivers of a sustained long-term gold price increase. He emphasized that gold is now a key investment asset rather than just an auxiliary portfolio tool.
A key advantage of the SOL International Gold ETF is that it avoids futures contract rollovers, which can reduce returns due to the contango effect—where long-term futures prices exceed near-term ones—common in futures-based gold ETFs.
The Deputy Minister noted, “For those considering gold as a long-term investment, such as within pension accounts, an ETF that tracks the international gold spot price offers a more efficient and stable choice.”
Earlier this year in March, Shinhan also launched the ‘SOL Gold Covered Call Active ETF,’ combining a covered call strategy with commodities exposure. This fund aims to generate both capital gains and income from rising gold prices.
