Kospi's Momentum Slows, But Cosmetics, Gold Mining, and Biotech ETFs Shine

South Korea's Kospi has seen its upward momentum slow compared to the first half of the year, but certain sectors have bucked this trend. The SOL Cosmetics TOP3 Plus ETF has surged by 30.09% in July, making it the fourth best performer among South Korean-listed ETFs.

The strength of cosmetics companies such as Kolmar Korea and Silicon2 drove this surge, with Kolmar Korea becoming the first ODM industry company to exceed 100 billion won ($72.2 million) in quarterly operating profit in Q2. The fund tracks the FnGuide Cosmetics TOP3 Plus Index and holds over 57% of its assets in these three stocks.

Gold mining company ETFs and gold futures leveraged ETFs have also seen significant gains, with HANARO Global Gold Mining Companies rising 29.58% this month to rank fifth in returns. Biotech ETFs, which underperformed last month, rebounded with TIGER KOSDAQ 150 Biotech climbing 20.35%.

Analysts point out that investment demand is broadening from a semiconductor-centric focus toward sectors showing earnings improvement. Ko Kyung-bum of Yuanta Securities notes that gold prices have been rising in tandem with the 30-year U.S. Treasury yield breaking above 5.3%, and gold mining companies are drawing attention.

Lee Sang-hyun of Meritz Securities agrees, stating that recent fund inflows into the ETF market show a broadening trend rather than concentration in semiconductors.