ACE KRX Physical Gold (411060) 🔎 In-depth

It follows the KRX Physical Gold Index. The index is calculated by the Korea Exchange (KRX) itself and represents the price of one gram of 99.99% pure gold traded on Korea's domestic KRX gold market. You can think of it as a 'won-denominated domestic gold price' that reflects both the international gold price (in dollars) and the won-dollar exchange rate together. Unlike an equity index, there is no process of selecting names and setting weights: the index simply turns the market price of a single asset, gold, into an index, so there are no stock-selection rules and no periodic rebalancing schedule. That leaves no room for 'index rules' to sway performance — the gold price alone determines the outcome.

The price moves along two axes. One is the international gold price (in dollars), and the other is the won-dollar exchange rate. Because the structure tracks the domestic gold price, the exchange rate is baked in, so if the dollar strengthens, the won-based gold price can rise even when the international gold price is unchanged. The gold price itself moves with factors such as the real interest rate (the rate minus inflation), dollar strength or weakness, geopolitical unease, and expanding gold holdings by central banks around the world. Broken down by conditions: when real interest rates fall, the relative appeal of gold — which pays no interest — grows, creating a favorable backdrop for the gold price; when real rates rise, the opportunity cost of holding gold grows, creating a heavier backdrop. A rising won-dollar rate (weaker won) is a plus for the domestic gold price, while a falling rate (stronger won) works as a minus. On days when the two axes move in opposite directions, the won-based price can tread water even as the international gold price climbs.

Because it often moves differently from stocks and bonds, it is commonly used to diversify assets and cushion risk. It draws attention as a 'safe asset,' especially when uncertainty rises. That said, one should clearly understand that gold pays no interest or dividends and that its price swings are by no means small. Contrary to the perception that 'gold is always safe,' it is an asset that can rise and fall sharply over the short term. On the cost side, the total expense ratio is 0.5% per year (per Korea Investment Management's official disclosure, based on the previous fiscal year). The total expense is deducted from fund assets a little each day as the price of running the fund, and it bundles the management fee paid to the manager, the trustee fee paid to the trust bank that stores and safeguards the physical gold, and the fee of the administrator that handles tasks such as NAV calculation. No separate bill arrives — it is already reflected in the price. The tax structure is also worth knowing. This product is classified not as a domestic equity ETF but as an 'other ETF,' so gains realized on sale are subject to 15.4% dividend-income withholding tax, and once combined financial income exceeds 20 million won a year, it is folded into comprehensive financial-income taxation. An interesting wrinkle: for the same gold, an individual trading physical gold directly on the KRX gold market pays no tax on trading gains. In exchange, the ETF can be traded conveniently in small amounts through a brokerage account, and holding it in a pension account such as a pension savings plan or IRP defers taxation until pension payouts begin, offering room to manage the tax burden. As for products following the same KRX Physical Gold Index, there is TIGER KRX Physical Gold, listed in June 2025. As of August 19, 2026, this ETF (ACE) had net assets of about 4.02 trillion won versus about 1.21 trillion won for TIGER — more than three times the size — and daily trading value that day was about 20.2 billion won for ACE versus about 9.4 billion won for TIGER. Larger size and trading value generally make it easier to get trades done at the price you want (liquidity). There are also alternatives such as KODEX Gold Futures (H) and TIGER Gold Futures (H), which hold gold futures with a currency hedge; these reduce the exchange-rate effect but incur futures rollover costs instead.

The international gold price climbed to the $5,500-per-ounce range in January 2026, marking an all-time high, before falling back to the low-$4,000 range by mid-July. It has undergone a considerable correction from its peak, but compared with a year earlier it remains at a high level. Reflecting this trend, the price of this ETF also came under downward pressure in July 2026. On August 19, 2026, it closed at 27,300 won with a net asset value (NAV) of 27,297.47 won, ending the day with almost no gap (premium/discount) between the market price and the NAV.

In a word, instead of buying gold directly and keeping it in a safe, this product lets you trade it like a stock. Its worth depends solely on the gold price (and the exchange rate). Remember that the fee is 0.5% a year, there are no distributions, and gains are taxed at 15.4% as an 'other ETF' — and you have the whole structure.