The Junior Gold Miners ETF Diversifies Investors From Buying A Single Speculative Miner Dud

dudAs gold breached new highs throughout the end of 2009, the timing of the Market Vectors Junior Gold Miners ETF (GDXJ) launch has been perfect. It was the right ETF at the right time, but the data also indicates that some of the inflows has also come from (GDX).  Investors looking to get more aggressive seem to have made the switch into the more speculative ETF.  (GDXJ) allows investors to diversify in speculative miners instead of the chance of just picking one miner and failing with a loser.

As Peter Cooper Reports From Gold Seek “Last year saw the launch of the first ETF covering junior mining stocks (GDXJ) and for a longer term play on the gold price with maximum leverage to the upside this looks a good choice. The ETF is highly diversified, avoiding the risk of picking a dud among the many junior firms, while still exposed to the precious metals sub-class with the highest upside in a boom, and is also very liquid unlike the small stocks themselves.”

“A diversified gold and silver portfolio for 2010 should therefore include the physical metals, selected major stocks and some exposure to the smaller companies. This will put investors in a position to capitalize on the big upswing in precious metal prices which is coming this year,” Cooper Reports.

Here are some details on the gold miners ETF’s below:

The Funds (GDXJ) investment objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index (the “Junior Gold Miners Index”). For a further description of the Junior Gold Miners Index, see “Junior Gold Miners Index.”

Fund Holdings of (GDXJ) as of 12/09        
No. Holding Ticker Shares Market Value % of net assets
1 Coeur d’Alene Mines Corp. (CDE) US 56,910 $1,191,695.40 6.42%
2 Silver Standard Resources (SSRI) US 51,510 $1,003,414.80 5.40%
3 New Gold Inc (NGD) CN 251,160 $972,587.72 5.24%
4 Hecla Mining Co (HL) US 177,285 $946,701.90 5.10%
5 Gammon Gold Inc (GRS) US 89,085 $878,378.10 4.73%
6 Alamos Gold Inc (AGI) CN 80,610 $808,060.57 4.35%
7 Silvercorp Metals Inc (SVM) CN 117,615 $712,342.27 3.84%
8 Semafo Inc (SMF) CN 187,800 $707,530.16 3.81%
9 European Goldfields Ltd (EGU) CN 95,100 $648,543.09 3.49%
10 Golden Star Resources Ltd (GSS) US 175,590 $598,761.90 3.22%
11 Northgate Minerals Corp (NXG) US 192,960 $567,302.40 3.06%
12 Kingsgate Consolidated Ltd (KCN) AU 65,010 $548,420.73 2.95%
13 Jaguar Mining Inc (JAG) CN 52,200 $545,176.21 2.94%
14 San Gold Corp (SGR) CN 185,925 $530,226.29 2.86%
15 Aurizon Mines Ltd (ARZ) CN 112,455 $528,783.59 2.85%
16 Novagold Resources Inc (NG) US 97,935 $509,262.00 2.74%
17 Andean Resources Ltd (AND) CN 229,485 $503,424.58 2.71%
18 Gabriel Resources Ltd (GBU) CN 147,360 $444,139.06 2.39%
19 Minefinders Corp (MFN) US 43,560 $433,857.60 2.34%
20 Allied Nevada Gold Corp (ANV) US 38,055 $428,499.30 2.31%
21 Ventana Gold Corp (VEN) CN 38,040 $420,147.07 2.26%
22 Rubicon Minerals Corp (RMX) CN 99,240 $411,744.96 2.22%
23 Great Basin Gold Ltd (GBG) CN 251,820 $393,900.33 2.12%
24 Lake Shore Gold Corp (LSG) CN 92,505 $355,567.89 1.91%
25 St Barbara Ltd (SBM) AU 1,032,395 $343,436.08 1.85%
26 Kirkland Lake Gold Inc (KGI) CN 38,685 $332,075.92 1.79%
27 Avoca Resources Ltd (AVO) AU 194,325 $333,011.01 1.79%
28 Fronteer Development Group  (FRG) US 79,110 $328,306.50 1.77%
29 Romarco Minerals Inc (R) CN 245,175 $327,383.28 1.76%
30 Medusa Mining Ltd (MML) AU 77,745 $284,326.89 1.53%
31 Detour Gold Corp (DGC) CN 20,685 $271,275.45 1.46%
32 Gold Wheaton Gold Corp (GLW) CN 759,960 $217,452.43 1.17%
33 Dominion Mining Ltd (DOM) AU 55,260 $202,474.00 1.09%
34 Real Gold Mining Ltd (246 HK) 127,500 $194,484.35 1.05%
35 Colossus Minerals Inc (CSI) CN 37,230 $187,135.39 1.01%
36 U S Gold Corp (UXG) US 61,875 $167,681.25 0.90%
37 Avocet Mining Plc (AVM) LN 97,665 $156,218.24 0.84%
38 Lingbao Gold Co Ltd-H (3330 HK) 210,000 $81,009.51 0.44%

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.

Fund Holdings of (GDX) as of 12/09        
No. Holding Ticker Shares Market Value % of net assets
1 Barrick Gold Corp (ABX) 18,718,639 $783,749,414.93 14.49%
2 Goldcorp Inc (GG) 14,249,524 $614,011,989.16 11.36%
3 Newmont Mining Corp (NEM) 9,475,288 $470,353,296.32 8.70%
4 AngloGold Ashanti Ltd (AU) 6,999,199 $304,045,204.56 5.62%
5 Lihir Gold Ltd (LIHR) 8,569,682 $265,317,354.72 4.93%
6 Cia de Minas Buenaventura (BVN) 7,114,374 $263,587,556.70 4.87%
7 Yamana Gold Inc (AUY) 21,130,631 $259,484,148.68 4.80%
8 Randgold Resources Ltd (GOLD) 3,203,698 $255,110,471.74 4.72%
9 Kinross Gold Corp (KGC) 13,436,964 $252,883,662.48 4.68%
10 IAMGOLD Corp (IAG) 14,744,197 $251,536,000.82 4.65%
11 Gold Fields Ltd (GFI) 16,291,819 $229,714,647.90 4.25%
12 Agnico-Eagle Mines Ltd (AEM) US 3,748,931 $223,736,202.08 4.14%
13 Eldorado Gold Corp (EGO) 16,025,187 $207,205,667.91 3.83%
14 Silver Wheaton Corp (SLW) 13,420,202 $199,692,605.76 3.69%
15 Harmony Gold Mining Co (HMY) 17,100,638 $175,452,545.88 3.24%
16 PAN American Silver Corp (PAAS) 3,501,327 $82,036,091.61 1.52%
17 Royal Gold Inc (RGLD) 1,636,283 $81,715,973.02 1.51%
18 Coeur d’Alene Mines Corp. (CDE) US 3,026,689 $63,378,867.66 1.17%
19 New Gold Inc (NGD) 15,532,015 $59,176,977.15 1.09%
20 Silver Standard Resources (SSRI) US 2,878,399 $56,071,212.52 1.04%
21 Hecla Mining Co (HL) US 9,493,058 $50,692,929.72 0.94%
22 Gammon Gold Inc (GRS) US 4,993,219 $49,233,139.34 0.91%
23 Seabridge Gold Inc (SA) 1,505,674 $35,142,431.16 0.65%
24 Golden Star Resources Ltd (GSS) US 9,492,472 $32,369,329.52 0.60%
25 Aurizon Mines Ltd (AZK) 6,375,413 $30,219,457.62 0.56%
26 Northgate Minerals Corp (NXG) US 10,274,632 $30,207,418.08 0.56%
27 Minefinders Corp (MFN) US 2,376,917 $23,674,093.32 0.44%
28 Great Basin Gold Ltd (GBG) 13,386,929 $20,883,609.24 0.39%
29 Nevsun Resources Ltd (NSU) 5,149,665 $14,882,531.85 0.28%
30 Tanzanian Royalty Exploration (TRE) 3,603,954 $12,469,680.84 0.23%
31 Cash   6,655,296 $6,655,380.14 0.12%
32 Vista Gold Corp (VGZ) CN 1,705,026 $4,569,469.68 0.08%

 

 Chart for MV Jr Gold Miners (GDXJ)

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