The dollar exchange rate fell 61.2 Korean won during August, from 1,429.8 won to 1,368.6 won at the 3:30 p.m. close, creating a sharp performance gap between currency-hedged ETFs (funds that reduce foreign-exchange exposure) and unhedged products for Korean investors. The unhedged TIGER US S&P500 fell 2.13% in August, while TIGER US S&P500(H) rose 2.06%; the corresponding Nasdaq-100 funds returned minus 1% and plus 3.22%, respectively. Over three months, the gap reached as much as 8 percentage points after the exchange rate fell more than 180 won from around 1,550 won in early July. Hedged gold ETFs also outperformed, with KODEX Gold Futures(H) and TIGER Gold Futures(H) gaining 8.41% and 8.14% over the month, compared with 4.17% for SOL International Gold. Hedging can limit losses from won appreciation but involves costs linked to South Korea-U.S. interest-rate differentials. Financial investment industry experts say long-term investors may favor lower-cost unhedged ETFs, while hedged products can provide partial protection against won depreciation.