A rapidly strengthening won is widening performance differences between currency-hedged and unhedged exchange-traded funds (ETFs) held by South Korean investors. The TIGER US S&P500 returned -3.91% over one month, while the hedged TIGER US S&P500 (H) gained 2.19%, a 6.10 percentage-point gap. The RISE US Semiconductor NYSE fell 5.23%, compared with a 0.38% gain for RISE US Semiconductor NYSE (H). In bonds, ACE US 30-Year Treasury Active dropped 8.49%, while its hedged counterpart fell 2.39%. The won-dollar exchange rate moved below 1,400 won and into the low 1,380-won range as expectations for further Federal Reserve rate hikes weakened. Hanwha Investment & Securities researcher Choi Kyu-ho said the dollar's strengthening pressure could ease further if weaker economic indicators and U.S. Treasury buybacks reduce downward pressure on long-term rates, while forecasting a near-term range from the high 1,300-won to low 1,400-won levels.