Gold Stock ETF Outperformance: A New Trend (PSAU, GDXJ, DUST, GGGG, GLDX, GLD, GDX)

Christian Magoon: Gold stock ETF products are on a roll over the last month securing the top five performance spots in the gold fund universe of over 20 products. Leading the charge are the following gold stock ETF products:

  • Global X Gold Explorers ETF (NYSEARCA:GLDX)
  • Global X Pure Gold Miners ETF (NYSEARCA:GGGG)
  • Direxion Daily Gold Miners Bull 3x Shares (NYSEARCA:DUST)
  • Market Vectors Junior Gold Miners Fund (NYSEARCA:GDXJ)
  • PowerShares Global Gold and Precious Metals Portfolio (NYSEARCA:PSAU)
Here’s the actual performance grid showing the top five gold ETFs sorted by four week performance from GoldETFs.biz. For a complete list of all gold ETF and ETN products that is sortable by performance and other factors CLICK HERE.

gold miners ETF, gold stock fund list, gold miners fund

Gold stock ETF products hold the top five performance spots over the last month.

What is unusual about this recent trend is that gold stocks have been under-performing physical gold over the last year. For example the largest physical gold ETF, the SPDR Gold Trust (NYSEARCA:GLD), has lost about 8.2% of its value in the last 12 months. In contrast the largest gold stock ETF, the Market Vectors Gold Miners ETF (NYSEARCA:GDX) has lost more than 25% of its value.

The current difference in the performance of these two connected market segments began about three months ago. Here’s a performance chart from the NASDAQ’s interactive chart center showing GDX’s recent outperformance of GLD.

gdx versus gld, gold stock vs gold price chart,

The largest gold stock ETF has outperformed the largest physical gold ETF over the last three months. GET A FREE TREND ANALYSIS FOR ANY STOCK HERE!

WHY ARE GOLD STOCK ETF PRODUCTS OUTPERFORMING?

Gold stocks have developed a massive gap in performance versus physical gold prices over the last few years creating opportunity in some investors’ eyes. Other investors may be betting that a potential new round of financial liquidity from central bankers or a weakening of the U.S. Dollar will result in greater upside for gold stocks than gold – a characteristic of gold stocks that has been the case more often than not. No matter the reasons behind the recent outperformance of gold stock ETF products, it is clear that a new trend has emerged that is worth watching.

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.”

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