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Are Investors Playing The Lottery With The New Junior Miners ETF?

November 27th, 2009

lottery-investing“Since its Nov. 11 debut, the Market Vectors Junior Gold Miners ETF(GDXJ) has advanced nearly 7% and drawn significant investor interest. Already, this addition to the gold ETF funds universe has an average daily trading volume of more than 2.8 million shares. Its popular large-cap predecessor, the Market Vectors Gold Miners ETF(GDX), has a three-month average daily trading volume of 12.6 million shares,” Don Dion Reports From The Street.

“GDXJ helps to provide investors exposure to junior gold miners with enormous potential for growth, while helping to minimize security-specific risk. Because some of the companies in GDXJ’s underlying portfolio companies have yet to generate material revenues and operate at a loss, trying to pick individual junior mining stocks can be like playing the lottery. GDXJ’s portfolio includes 39 junior gold miners, reducing the impact that the failure of any single underlying component would have on the investment as a whole,” Dion Reports.

“While the number of GDXJ’s underlying components helps to temper the risk of this ETF, 46% of assets are dedicated to the fund’s top 10 holdings. Investors and prospective investors should, therefore, familiarize themselves with GDXJ’s top components. The performances of GDXJ’s top five holdings, in particular, have a significant impact on the fund’s trading,” Dion Reports.


See The Full Story: HERE

We have listed some details on the 2 miners ETF’s (GDX) and (GDXJ) below:

Here is a detailed list of the Junior Gold Miners Index (MVGDXJ) we put together using Van Eck’s site as a reference.  (This list is subject to changes and errors)

  Market Vectors Junior Gold Miners Index (MVGDXJ) Constituents
  Company Name Ticker Symbol ETF % Company Website
1 Alamos Gold Inc. (AGI.TO) 5.11% www.alamosgold.com
2 Allied Nevada Gold Corp.   (ANV.A) 2.22% www.alliednevada.com
3 Andean Resources Ltd. (AND.TO) 2.99% www.andean.com.au
4 Aurizon Mines Ltd.  (AZK) (ARZ.TO) 3.52% www.aurizon.com
5 Avoca Resources Ltd. (AVO.AX) 2.06% www.avocaresources.com.au
6 Avocet Mining PLC. (AVM.L) 0.88% www.avocet.co.uk
7 Coeur d’Alene Mines Corp. (CDE) (CDM.TO) 6.20% www.coeur.com
8 Colossus Minerals Inc. (CSI.TO) 0.89% www.colossusminerals.com
9 Detour Gold Corp. (DGC.TO) 1.38% www.detourgold.com
10 Dominion Mining Ltd. (DOM.AX 1.33% www.dml.com.au
11 European Goldfields Ltd. (EGU.TO) 2.13% www.egoldfields.com
12 Fronteer Develop. Group Inc. (FRG) (FRG.TO) 2.37% www.fronteergroup.com
13 Gabriel Resources Ltd. (GBU.TO) 1.55% www.fronteergroup.com
14 Gammon Gold Inc. (GRS) (GAM.TO) 4.32% www.gammongold.com
15 Gold Wheaton Gold Corp. (GLW.V) 1.07% www.goldwheaton.com
16 Golden Star Resources Ltd.  (GSS) (GSC.TO) 3.31% www.gsr.com
17 Great Basin Gold Ltd. (GBG) (GBG.TO) 2.54% www.greatbasingold.com
18 Hecla Mining Co. (HL) 3.80% www.hecla-mining.com
19 Jaguar Mining Inc. (JAG.TO) 3.67% www.jaguarmining.com
20 Kingsgate Consolidated Ltd. (KCN.AX) 2.96% www.kingsgate.com.au
21 Kirkland Lake Gold Inc. (KSI.TO) 2.41% www.klgold.com
22 Lake Shore Gold Corp. (LSG.TO) 1.78% www.lsgold.com
23 Medusa Mining Ltd. (MML.AX) 1.22% www.medusamining.com.au
24 Lingbao Gold Co Ltd. (3330.HK) 0.52% www.lbgold.com
25 Minefinders Corp Ltd. (MFN) (MFL.TO) 2.79% www.minefinders.com
26 New Gold Inc. (NGD) (NGD.TO) 6.13% www.newgoldinc.com
27 Northgate Minerals Corp. (NXG) (NXG.TO) 3.11% www.northgateminerals.com
28 Novagold Resources Inc. (NG) (NG.TO) 2.74% www.novagold.com
29 Real Gold Mining Ltd. (0246.HK) 0.80% www.realgoldmining.com
30 Romarco Minerals Inc.  (R.V) 1.69% www.romarco.com
31 Rubicon Minerals Corp. (RBY) (RMX.TO) 2.17% www.rubiconminerals.com
32 San Gold Corp. (SGR.V) 3.73% www.sangoldcorp.com
33 Semafo Inc. (SMF.TO) 2.71% www.semafo.com
34 Silver Standard Resources Inc. (SSRI) (SSO.TO) 6.70% www.silverstandard.com
35 SilverCorp Metals Inc. (SVM) (SVM.TO) 3.10% www.silvercorpmetals.com
36 St Barbara Ltd. (SBM.AX) 1.60% www.stbarbara.com.au
37 US Gold Corp. (UXG) (UXG.TO) 1.24% www.usgold.com
38 Ventana Gold Corp. (VEN.TO) 1.21% www.ventanagold.com

The investment (GDX) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the AMEX Gold Miners index. The fund generally normally invests at least 80% of its total assets in common stocks and American depositary receipts (ADRs) of companies involved in the gold mining industry. The fund is nondiversified.

TOP 10 HOLDINGS (GDX) ( 68.62% OF TOTAL ASSETS)  
 
Company Symbol % Assets
AGNICO EAGLE MINES (AEM) 5.05
ANGLOGOLD ASHANTI LT (AU) 5.66
BARRICK GOLD CP (ABX) 14.08
Buenaventura Mining Company Inc. ADR N/A 4.97
GOLD FIELDS LTD ADS (GFI) 4.45
GOLDCORP INC (GG) 11.41
KINROSS GOLD CP (KGC) 5.79
NEWMONT MIN CP (HLDG (NEM) 8.28
Randgold Resources Limited (GOLD) 4.44
YAMANA GOLD INC (AUY) 4.49

Chart for Market Vectors Gold Miners ETF (GDX)

 

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