Gold miners have been extremely volatile as of late as gold prices have wildly oscillated. And since miners often trade as a more explosive play on the underlying metal, there have definitely been some big moves in the miner ETF world recently.
This is particularly true when investors look to the leveraged gold miner ETF space, with products like Daily Gold Miners Bull 3x Shares (NYSEARCA:NUGT) and Daily Gold Miners Bear 3x Shares (NYSEARCA:DUST). These two products—which look to take 300% daily moves of their underlying NYSE Arca Gold Miners Index—have seen truly astounding performances lately with DUST adding 41% in the past month, and NUGT losing a similar amount over the past 30 days (see all the leveraged equity ETFs here).
Clearly, big moves can happen in leveraged products targeting this space, making ETFs like this very interesting plays for short term traders in the metals space. And now, given the volatility and the heavy trader interest, it appears as if Direxion isn’t stopping at just the ‘regular’ gold miners, and that it is now expanding its leveraged and inverse lineup to the junior gold miners space too.
Junior Gold Miners in Focus
Stocks in this segment are even more volatile than their large cap counterparts, and can see even bigger moves when gold prices are either soaring or sliding. This makes these stocks great choices for those seeking big bang for your buck plays on a move in gold.
Currently, the space is dominated by the Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ), an unleveraged ETF that has about $1.75 billion in assets, and sees volume of about one million shares a day. This fund now has some leveraged and inverse counterparts though, as Direxion has just released its Daily Junior Gold Miners Index Bull 3x Shares (NYSEARCA:JNUG) and the Daily Junior Gold Miners Index Bear 3x Shares (NYSEARCA:JDST).
These ETFs look to act as daily rebalancing cousins to GDXJ, tracking the same index but using 300% leverage. These give JNUG and JDST exposure to about 70 companies, with a focus on small caps (see 3 Small Cap Stocks Leading the Market Higher).
In terms of national exposure, Canada takes up nearly 60%, while Australia (20%), and the U.S. (9%) round out the top three countries.