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The Zacks Analyst Blog Highlights iShares MSCI Global Gold Miners ETF, US Global GO GOLD and Precious Metal Miners ETF, Market Vectors Gold Mining ETF, Sprott Gold Miners ETF and VanEck Vectors Junior Gold Miners ETF
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For Immediate Release
Chicago, IL – October 17, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares MSCI Global Gold Miners ETF (RING - Free Report) , US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) , Market Vectors Gold Mining ETF (GDX - Free Report) , Sprott Gold Miners ETF (SGDM - Free Report) and VanEck Vectors Junior Gold Miners ETF (GDXJ - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Gold Mining ETFs Shine on Safe-Haven Rush
Gold prices jumped 3% on Oct 13, logging in the best week in seven months amid growing tensions in the Middle East and steady inflation. Metal miners are the biggest beneficiaries of the surge in gold price as the mining companies act as a leveraged play on the underlying metal prices and thus tend to experience more gains than their bullion cousins in a rising metal market.
Inflation in the United States was steady last month as the Consumer Price Index rose 3.7% year over year, flat compared with the August level. Although inflation is still significantly above the Federal Reserve's 2% target, it has dropped from a peak of 9.1%. On a month-over-month basis, inflation decelerated from 0.6% to 0.4%. A steady inflation rate suggests that the U.S. economy is showing resilience and interest rates may be declining (read: Inflation Steadies in September: ETFs to Gain).
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion. Traders see around a 69% chance of the Fed leaving interest rates unchanged this year, according to the CME Fedwatch tool.
The ongoing geopolitical tension, especially the conflict between Israel and Hamas, sent investors rushing for safe-haven assets. This is especially true as the surprise attack by Hamas on Israel has escalated the situation, leading Israel to declare war. Gold is often used as a means of preserving wealth during times of financial and political uncertainty. It usually does well when other asset classes struggle (read: Small-Cap ETFs to Bet on Amid Dovish Fed, Mideast Conflict).
ETFs in Focus
Let’s delve into each ETF below:
iShares MSCI Global Gold Miners ETF
iShares MSCI Global Gold Miners ETF offers exposure to companies that derive the majority of their revenues from gold mining. It follows the MSCI ACWI Select Gold Miners Investable Market Index and holds 37 securities in its portfolio. Canadian firms take more than half of the portfolio, while the United States takes the next spot at 17.3% share. RING is the cheapest choice in the gold mining space, charging just 39 bps in fees and expenses.
iShares MSCI Global Gold Miners ETF has been able to manage assets worth $372.2 million and trades in a good volume of 66,000 shares per day.
US Global GO GOLD and Precious Metal Miners ETF
US Global GO GOLD and Precious Metal Miners ETF provides investors with access to companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means. It tracks the U.S. Global Go Gold and Precious Metal Miners Index, holding 29 stocks in its basket. Canada takes the lion’s share at 53.3%, followed by South Africa (18.5%), Australia (11.9%) and the United States (10.4%).
US Global GO GOLD and Precious Metal Miners ETF has amassed $84.3 million in its asset base and charges 60 bps in fees per year. It trades in a volume of 26,000 shares per day on average.
Market Vectors Gold Mining ETF
Market Vectors Gold Mining ETF is the most popular and actively traded gold miner ETF with AUM of $11 billion and an average daily volume of around 17 million shares. It follows the NYSE Arca Gold Miners Index, which measures the overall performance of companies involved in the gold mining industry. It holds 58 stocks in its basket. Canadian firms account for about 43% of the portfolio, while Australia (14.9%) and the United States (14.8%) round off the top three spots (read: Are Gold Bullion ETFs Better Bets Than Miners?).
Sprott Gold Miners ETF follows the Solactive Gold Miners Custom Factors Index, which aims to track the performance of larger-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges. It holds 31 stocks in its basket. Here again, Canada takes the top spot at 75.2%, followed by 13.3% in the United States.
Sprott Gold Miners ETF has amassed $212.6 million in its asset base and trades in a lower volume of around 19,000 shares a day. It charges 50 bps in annual fees from investors.
VanEck Vectors Junior Gold Miners ETF
VanEck Vectors Junior Gold Miners ETF offers exposure to small-capitalization companies that are involved primarily in the mining of gold and/or silver and tracks the MVIS Global Junior Gold Miners Index. Holding 99 stocks in its basket, Canadian firms dominate the fund’s portfolio with 56.7% share, while Australia (16.8%) and Mexico (4.8%) round out the top three.
VanEck Vectors Junior Gold Miners ETF has AUM of $4 billion and charges 52 bps in annual fees. It trades in a heavy volume of around 6 million shares a day on average.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights iShares MSCI Global Gold Miners ETF, US Global GO GOLD and Precious Metal Miners ETF, Market Vectors Gold Mining ETF, Sprott Gold Miners ETF and VanEck Vectors Junior Gold Miners ETF
For Immediate Release
Chicago, IL – October 17, 2023 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. ETFs recently featured in the blog include: iShares MSCI Global Gold Miners ETF (RING - Free Report) , US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) , Market Vectors Gold Mining ETF (GDX - Free Report) , Sprott Gold Miners ETF (SGDM - Free Report) and VanEck Vectors Junior Gold Miners ETF (GDXJ - Free Report) .
Here are highlights from Monday’s Analyst Blog:
Gold Mining ETFs Shine on Safe-Haven Rush
Gold prices jumped 3% on Oct 13, logging in the best week in seven months amid growing tensions in the Middle East and steady inflation. Metal miners are the biggest beneficiaries of the surge in gold price as the mining companies act as a leveraged play on the underlying metal prices and thus tend to experience more gains than their bullion cousins in a rising metal market.
Inflation in the United States was steady last month as the Consumer Price Index rose 3.7% year over year, flat compared with the August level. Although inflation is still significantly above the Federal Reserve's 2% target, it has dropped from a peak of 9.1%. On a month-over-month basis, inflation decelerated from 0.6% to 0.4%. A steady inflation rate suggests that the U.S. economy is showing resilience and interest rates may be declining (read: Inflation Steadies in September: ETFs to Gain).
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion. Traders see around a 69% chance of the Fed leaving interest rates unchanged this year, according to the CME Fedwatch tool.
The ongoing geopolitical tension, especially the conflict between Israel and Hamas, sent investors rushing for safe-haven assets. This is especially true as the surprise attack by Hamas on Israel has escalated the situation, leading Israel to declare war. Gold is often used as a means of preserving wealth during times of financial and political uncertainty. It usually does well when other asset classes struggle (read: Small-Cap ETFs to Bet on Amid Dovish Fed, Mideast Conflict).
ETFs in Focus
Let’s delve into each ETF below:
iShares MSCI Global Gold Miners ETF
iShares MSCI Global Gold Miners ETF offers exposure to companies that derive the majority of their revenues from gold mining. It follows the MSCI ACWI Select Gold Miners Investable Market Index and holds 37 securities in its portfolio. Canadian firms take more than half of the portfolio, while the United States takes the next spot at 17.3% share. RING is the cheapest choice in the gold mining space, charging just 39 bps in fees and expenses.
iShares MSCI Global Gold Miners ETF has been able to manage assets worth $372.2 million and trades in a good volume of 66,000 shares per day.
US Global GO GOLD and Precious Metal Miners ETF
US Global GO GOLD and Precious Metal Miners ETF provides investors with access to companies engaged in the production of precious metals either through active (mining or production) or passive (owning royalties or production streams) means. It tracks the U.S. Global Go Gold and Precious Metal Miners Index, holding 29 stocks in its basket. Canada takes the lion’s share at 53.3%, followed by South Africa (18.5%), Australia (11.9%) and the United States (10.4%).
US Global GO GOLD and Precious Metal Miners ETF has amassed $84.3 million in its asset base and charges 60 bps in fees per year. It trades in a volume of 26,000 shares per day on average.
Market Vectors Gold Mining ETF
Market Vectors Gold Mining ETF is the most popular and actively traded gold miner ETF with AUM of $11 billion and an average daily volume of around 17 million shares. It follows the NYSE Arca Gold Miners Index, which measures the overall performance of companies involved in the gold mining industry. It holds 58 stocks in its basket. Canadian firms account for about 43% of the portfolio, while Australia (14.9%) and the United States (14.8%) round off the top three spots (read: Are Gold Bullion ETFs Better Bets Than Miners?).
Market Vectors Gold Mining ETF charges 51 bps in annual fees.
Sprott Gold Miners ETF
Sprott Gold Miners ETF follows the Solactive Gold Miners Custom Factors Index, which aims to track the performance of larger-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges. It holds 31 stocks in its basket. Here again, Canada takes the top spot at 75.2%, followed by 13.3% in the United States.
Sprott Gold Miners ETF has amassed $212.6 million in its asset base and trades in a lower volume of around 19,000 shares a day. It charges 50 bps in annual fees from investors.
VanEck Vectors Junior Gold Miners ETF
VanEck Vectors Junior Gold Miners ETF offers exposure to small-capitalization companies that are involved primarily in the mining of gold and/or silver and tracks the MVIS Global Junior Gold Miners Index. Holding 99 stocks in its basket, Canadian firms dominate the fund’s portfolio with 56.7% share, while Australia (16.8%) and Mexico (4.8%) round out the top three.
VanEck Vectors Junior Gold Miners ETF has AUM of $4 billion and charges 52 bps in annual fees. It trades in a heavy volume of around 6 million shares a day on average.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.