Gold ETFs Win & Lose Big Over Last Month (GGGG, DGP, UGLD, DGP, NUGT, UGL)
Christian Magoon: Gold ETFs Differ In Returns By Over 60 Percentage Points In The Last 30 Days. Gold ETFs and ETNs have experienced an eventful last month with stimulus efforts rallying markets and gold prices. This broke a longer term trend that began in late February of this year which pushed traditional gold ETFs downward. That decline is now a memory for most investors as performance over the last thirty days has been remarkable for the best gold ETFs and ETNs. Here’s the five best performers over the last month from the GoldETFs.biz performance grid. This grid contains three gold ETFs and two gold ETNs which have gained between 11% – 34% the last four weeks.
The best gold ETFs & ETNs in the last thirty days have achieved double digit gains.
Only one product in the chart above is not leveraged and that is the Global X Pure Gold Miners ETF (NYSEARCA:GGGG). The other products seek to leverage the return of gold (NYSEARCA:UGLD), (NYSEARCA:DGP), (NYSEARCA:UGL) or gold stocks (NYSEARCA:NUGT). The most owned top performer of the last four weeks is the DB Gold Double Long ETN (NYSEARCA:DGP) which holds close to $580 million of investor assets. For a complete list of all gold ETF and ETN products and related data, visit our gold ETF list.
On the flip side, the worst gold ETFs and ETNs over the last month have lost between 5% – 30%. This group is composed of three ETN and two ETF products, all seeking inverse exposure to gold or gold stocks. Additionally all of them employ leverage. After the page break, view the snapshot of the five leading laggards from the GoldETFs.biz performance grid.
The worst gold ETFs and ETNs saw a wide dispersion in performance.
While the last month has produced both returns and losses of as much as 30% for investors in gold ETFs, the next four weeks have the potential to be just as volatile. Growing tensions in the Middle East as well as in Asia are already influencing gold prices. Not to be forgotten are the likely developments in the EU debt crisis that always seem to roil gold prices as well. Any of these situations could move gold ETFs and ETNs considerably.
Investors should remain cautious for material volatility in either direction as the geopolitical and global economic landscape is fragile. Over the long term however, this fragility would seem to be beneficial for gold, a scarce asset with a long history as a store of value in uncertain times.
Christian Magoon is Publisher of GoldETFs.biz and IndiaETFs.com. He is also CEO of Magoon Capital, a strategic consultant firm to asset managers. Christian Magoon is an ETF insider, having launched over 40 ETFs in the United States to date. A widely recognized thought leader on finance and market issues, Christian regularly contributes to many financial media outlets. Prior to forming Magoon Capital in 2010, Christian was President of Claymore Securities (now Guggenheim Investments), where he built one of the fastest growing and most innovative ETF businesses in the country, gathering more than $3 billion in AUM in three years. He launched more than 40 ETFs, introducing many “firsts” to the U.S. market, including the first Frontier Markets, Sector Rotation, Solar Energy, Timber, BRIC and suite of China focused ETFs. Christian consistently provides his industry insights and knowledge as a commentator in the U.S. media speaking publicly on macro investment issues and ETF related topics. Follow him on Twitter @ChristianMagoon. In 2008, he was named by Institutional Investor News as one of the five people to watch in the U.S. ETF marketplace. In 2011, Financial Planning magazine dubbed Christian an “ETF Pioneer.”