With the KOSPI's gains lagging behind the first half of the year, exchange-traded funds (ETFs) tied to gold, cosmetics and biotech have posted relatively strong returns this month. Analysts say investment demand is spreading from semiconductors toward sectors showing improving earnings.
The SOL Cosmetics TOP3 Plus ETF rose 30.09% this month, ranking fourth among domestically listed ETFs, the Korea Exchange (KRX) said on the 24th. That is more than six times the KOSPI's gain of 4.81% over the same period.
The SOL Cosmetics TOP3 Plus tracks the FnGuide Cosmetics TOP3 Plus Index and holds more than 57% of its assets in three stocks: Silicon2, Kolmar Korea and APR. It gained just 2.29% last month, missing the top 50 by return, but widened its gains this month on strong results from major cosmetics companies.
Kolmar Korea posted quarterly operating profit of more than 100 billion won in the second quarter, the first Korean original development manufacturing (ODM) company to do so. Silicon2 also topped 400 billion won in quarterly revenue for the first time, while APR set a revenue guidance of 3 trillion won for this year. The TIGER Cosmetics and HANARO K-Beauty ETFs also rose 23.51% and 17.93% over the same period, ranking eighth and 13th by return.
Precious-metal ETFs also strengthened as gold prices climbed again amid a weaker dollar and turmoil in the U.S. Treasury market. Gold closed at $4,680.60 an ounce on the New York Mercantile Exchange on the 21st, its highest level in about three months since May 14, when it stood at $4,685.30.
Riding the rally, the HANARO Global Gold Miners ETF rose 29.58% this month for the fifth-highest return, while the ACE Gold Futures Leverage (Synthetic H) climbed 22.10% for ninth place. The KODEX Silver Futures (H) and TIGER Silver Active ETFs, which track silver prices, gained 17.43% and 15.59%, respectively.
Biotech ETFs, which lagged last month, also rebounded. None ranked among the top 50 by return last month, but this month the TIGER KOSDAQ150 Biotech ETF rose 20.35% for 10th place. The UNICORN K-Bio Active and ACE K-Bio KOSDAQ Active ETFs gained 16.21% and 15.98%, ranking 19th and 21st.
Among chip ETFs, by contrast, only two made the top 50 by return: the KODEX AI Semiconductor Core Equipment (16.37%, 18th) and the TIGER AI Semiconductor Core Process (13.69%, 50th). "Semiconductors are leading this rising market, but alpha is also emerging in earnings-surprise sectors such as capital goods, insurance and cosmetics," said Lee Sang-hyun, an analyst at Meritz Securities.
