It was found that among major investment vehicles this year, the KOSPI 200 exchange-traded fund (ETF) had the highest rate of return.
Oil prices rose by more than 67%, but did not reach the rate of increase of ETFs that track the KOSPI 200. Gold, Bitcoin, and bonds fell compared to the beginning of the year.
According to investment return data by asset from Daishin Securities [003540] on the 27th, KODEX200 rose from 60,460 won on January 2 this year to 109,285 won on the 20th, recording a return of 80.76%. After the extremely volatile market last July, the KOSPI 200 index maintained the highest return despite falling more than 20% from its peak.
KODEX200 is an ETF designed to follow the movements of the KOSPI 200 index. KOSPI 200 consists of 200 large-cap stocks representing the domestic stock market.
The rate of return of KODEX200 is approximately 40.6 times the rate of return of 1.99% for one-year maturity term deposits of the five major banks. The deposit rate of return is based on the average base interest rate of NH Nonghyup, KB Kookmin, Shinhan, Hana, and Woori Bank, which is 2.77% per year, and is a prorated value of profits for 262 days from January 1 to September 20 of this year.
Rates of return are calculated before management, compensation and taxes are deducted.
The second highest rate of return was West Texas Intermediate (WTI) New York source. The price of WTI rose from $57.41 to $96.08 per barrel during the same period, an increase of 67.36%.
The average return rate of 272 domestic active stock funds was also calculated at 58.07%. This figure is based on funds with operating assets of 10 billion won or more.
Overseas stock returns were significantly lower than domestic stocks. The SPY ETF, which tracks the U.S. Standard & Poor's (S&P) 500 index, rose 11.08% during the same period.
On the other hand, gold and Bitcoin performed poorly. The domestic gold retail price fell 2.60% from 883,000 won to 860,000 won per 3.75g (1 dong). Bitcoin fell 10.18% from about $89,953 to $80,793.
Bonds also recorded negative returns. The Korea Credit Rating Bond Composite Index fell 3.77%, lowering from 279.70 to 269.15. The bond index is an investment rate of return indicator that reflects interest income and profits and losses resulting from bond price fluctuations.
The exchange rate showed a strong won. The won/dollar exchange rate fell 4.59% from 1,466.70 won to 1,380.30 won per dollar. The won/yen exchange rate also fell by 4.16% from 922.70 won to 884.33 won per 100 yen. A decline in the exchange rate means that the amount of won it costs to buy 1 dollar or 100 yen has decreased.
Lee Kyung-min, a researcher at Daishin Securities, presented the KOSPI expected range for the fourth quarter as 6,000 to 9,300. He said, “Global monetary policy uncertainty has passed its peak, and oil prices and bond interest rates are expected to stabilize downward as a peaceful atmosphere is formed between the United States and Iran ahead of the U.S. midterm elections in early November,” and believed that solid export momentum, the still high exchange rate level, and improved performance in artificial intelligence (AI)-related industries such as semiconductors, IT hardware, automobiles, power devices, and secondary batteries can support the stock market trend.
However, it was predicted that there is a possibility that the KOSPI peak may be delayed to the first quarter of next year, considering the fluctuations in the results of the midterm elections in November.
