outline
There are so many different ETFs on the market that it can be called the era of ETFs.
Thanks to this, the situation has changed a lot from the past when ETFs had to be opened and invested in overseas accounts due to limited options.
Even with fierce competition in the ETF market, ETFs that track representative indices such as S&P 500 or Nasdaq are converging to the 0% range.
Nowadays, interest in tax savings is increasing again due to the issue of gold investment tax, and as the benefits and importance of ISA, IRA, and pension savings increase, it is recommended to invest in ETFs in Korean tax savings accounts.
Something that doesn’t exist in the Korean ETF market
Now, various styles of fund management are possible with ETFs listed in Korea.
But, there is just one thing. Raw materials are always a concern.
So I found the most similar one and would like to recommend it.
How to allocate assets using ISA? TIGER Global Resource Production Company (H) ETF
As someone who has been in the nth year of introductory coding, this level of ETF analysis is possible with Python, but... …
For light analysis, I like to use PortfolioVisualizer.
For those of you who are confused by the recently changed interface, I will briefly introduce how to use it.
You can use it as before by clickingMain page - Tools - Backtest Portfolio - Customize Data.
Source: Naver Pay Securities, ETF Analysis Tab
Today's subject,TIGER Global Resources Production Company (Composite H)ETF, is said to follow the MorningStar Global Upstream Resources Index (PR).
Unfortunately, the index is not supported by PortfolioVisualizer, so I searched to see if there was a product that followed it.
0 Source:ETF DB, GUNR ETF
It was found that an ETF called GUNR tracks the index.
PDBC vs GUNR full-scale comparison
Now that we have found the materials needed to analyzeTIGER Global Resource Production Company, it is time to analyze it properly.
On the right is PDBC, which is commonly used as an existing commodity ETF, and on the left is GUNR.
Source: PortfolioVisualizer
GUNR is better for both average annual profit and MDD (maximum drop).
However, since our goal is not just the rate of return, what is more important is how similar the movements are rather than “how much it has risen.” The Benchmark Correlation value, which determines the similarity of movements, is 0.74, which is somewhat ambiguous to judge the possibility of substitution.
Source: Portfolio Visualizer, 2015~present, GUNR (pa), PDBC (yeondu) stock price trend
Correlation showed some differences because it reflects the direction of all data (monthly in the case of the above analysis), but if you look at the chart above, you can see that it was similar in the long run.
This means that although monthly movements were often different, they were similar in the long run.
Source: Portfolio Visualizer, 2022~present, GUNR (pa), PDBC (yeondu) stock price trend
If you look at the period after 2022, when interest rates were raised due to inflation, you can see that the S&P 500 fell, while commodity ETFs held firm.
If hedging with raw materials during this period, he could have easily overcome the crisis with much less volatility than others.
What about gold, which protects against inflation using the same principle?
In fact, some people respond by increasing the proportion of gold as an alternative to PDBC. Even looking back recently, someone who chose gold would have performed much better. However, the correlation with gold is 0.08 and the long-term movements are quite different. The performance may be good, but it is not an appropriate choice to implement the strategy more closely to the original.
conclusion
As the analysis was conducted using alternative tickers, it is not perfect. EvenTIGER Global Resource Production Companyis a foreign exchange hedging product...ㅜㅠ
Therefore, just because the average annual profit has been good so far does not mean that it is upwardly compatible, and if there is a configuration that is operating well, there is no reason to change. However, if you need to use a Korean account or want to use a savings account, I think this is the closest product as an alternative to PBDC.