Go to Contents Go to Navigation

Dollar futures ETFs shine on strong greenback

Finance 08:44 August 07, 2019

SEOUL, Aug. 7 (Yonhap) -- South Korea's exchange traded funds (ETFs) for dollar futures have posted high returns this year on a strong greenback, a market tracker said Wednesday.

South Korea's three major ETFs for dollar futures leverage products posted an average return of slightly over 16 percent as of Monday, according to FnGuide.

Those ETFs, which track a dollar futures index and have assets of 1 billion won (US$822,000) or more under management, register higher yields as the U.S. dollar strengthens against the Korean won.

Dollar futures ETFs shine on strong greenback - 1

The figure strikes a sharp contrast with the median return of minus 3.5 percent recorded by ETFs for domestic stocks.

The stellar performance of the dollar futures ETFs comes amid the greenback's appreciation against the South Korean currency.

The South Korean unit fell below the psychologically important 1,200-won level against the dollar Monday, driven by an escalating trade war between the United States and China, Japan's new export controls on South Korea and the yuan's weakness.

Market watchers expected the Korean won to remain weak against the greenback for the time being, given such negative external factors.
(END)

HOME TOP
Send Feedback
How can we improve?
Thanks for your feedback!