Gold Miners ETF Triumph (GDX, GDXJ, RING, GLDX, GLD)

Christian Magoon: Gold miners ETF (NYSEARCA:GDX) is the largest gold mining ETF with over $9 billion of investor assets. (For complete GDX performance and other data visit the GDX profile page.) Over the the last month GDX  from Market Vectors has outperformed the largest physical gold ETF (NYSEARCA:GLD), the largest silver ETF (NYSEARCA:SLV), the S&P 500 ETF (NYSEARCA:SPY) and the U.S. Dollar Bullish ETF (NYSEARCA:UUP). It appears as though the large cap gold miners ETF is on a roll that can’t be stopped as more financial liquidity may boost GDX and other gold miners ETF funds to even larger gains.

gold stock ETF, GDX ETF, GDX, GDXJ, market vectors god miners

Gold miners ETF funds have been on a roll the last month.

Although GDX has been peerless of late when it comes to major ETF market segments mentioned above, it is being outperformed by its little brother. The second largest gold miners ETF (NYSEARCA:GDXJ) focuses on the junior gold mining stocks. It has a bit more than $2 billion in assets but has outperformed GDX over the last month, gaining over 20% during that period. Of course, GDX beats GDXJ over longer time periods – like year to date and one year – because GDXJ is more volatile. However if the recent bullish trend for gold and gold miners ETF funds continue, GDXJ is worth a second look.

There are other lesser followed gold miners ETF funds competing for market share in the space from iShares and Global X. Both funds however only have a tad over $30 million in assets and thus many investors pass them by. The iShares MSCI Global Gold Miners Fund (NYSEARCA:RING) just launched in 2012 and deserves the benefit of the doubt. The Global X Gold Explorers ETF (NYSEARCA:GLDX) was launched in 2010 however and not been able to gain much traction. That’s a shame as GLDX has been sensitive to gold price moves and seems to fit right in between GDX and GDXJ.

Going forward gold miners ETF funds are well positioned for the potential run in gold. That run could be stymied however if the Federal Reserve does not come through with another liquidity injection in mid September. Investors in gold and gold stocks have been disappointed in the Fed before so it is important to be cautious about this hope fueled rally.

Written By Christian Magoon From Magoon Capital

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.”

Leave a Reply

Your email address will not be published. Required fields are marked *