We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gold Logs Big Weekly Gains in 2 Months: 5 ETF Winners
Read MoreHide Full Article
After a significant decline in recent months, gold is experiencing a surge. The bullion logged its biggest weekly gain since April, driven by the Fed pause bets. Metal miners are the biggest beneficiaries of the surge in the gold price as these 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.
Sprott Junior Gold Miners ETF (SGDJ - Free Report) stole the show, jumping 11.2% last week, followed by gains of nearly 9% each in Global X Gold Explorers ETF (GOEX - Free Report) , VanEck Junior Gold Miners ETF (GDXJ - Free Report) , US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) and VanEck Gold Miners ETF (GDX - Free Report) .
U.S. consumer prices in June registered their smallest annual increase in over two years, reviving hopes that the Fed was nearing the end of its interest rate increases. The latest data shows that the Consumer Price Index rose 3% year over year and 0.2% over the last month. Although inflation has dropped from a peak of 9.1%, it is still significantly above the Federal Reserve's 2% target. Easing inflation indicates that the economy is stabilizing and interest rates may be declining (read: 5 ETFs to Gain as Inflation Drops to a 2-Year Low).
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion. A slowdown in the pace of rate hikes will provide some support to the yellow metal. Additionally, weakness in the U.S. dollar supported the rally in the gold price. The dollar wrapped up its worst week since November and dropped to a 15-month low, making bullion cheaper for overseas buyers.
Here’s a detailed discussion of the five ETFs mentioned earlier:
Sprott Junior Gold Miners ETF follows the Solactive Junior Gold Miners Custom Factors Index, which measures the performance of junior gold producers with the strongest revenue growth and junior exploration companies with the strongest stock price momentum. It holds 45 stocks in its basket, with Australian firms making up the largest share at 52.7%, followed by Canada (37.9%).
Sprott Junior Gold Miners ETF has amassed $103.6 million in its asset base and trades in a lower volume of around 18,000 shares a day. It charges 53 bps in annual fees from investors.
Global X Gold Explorers ETF provides exposure to companies involved in the exploration of gold deposits and tracks the Solactive Global Gold Explorers & Developers Total Return Index. It is home to 51 stocks. Canadian firms dominate the fund’s return at 48.2%, followed by Australia (24.6%) and Indonesia (10%).
Global X Gold Explorers ETF is unpopular and illiquid, with AUM of $39.5 million and an average daily volume of 4,000 shares. The expense ratio comes in at 0.65% (read: S&P 500 Reclaims 4,500 Level: 5 Best Stocks in 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 57.5% of the portfolio, while Australia (16.4%) and the United Kingdom (6%) 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 5 million shares a day on average.
US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report)
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 28 stocks in its basket. Canada takes the lion’s share at 55.2%, followed by South Africa (20.9%), Australia (12.3%) and the United States (9.7%).
US Global GO GOLD and Precious Metal Miners ETF has amassed $98.6 million in its asset base and charges 60 bps in fees per year. It trades in a volume of 36,000 shares per day on average.
Market Vectors Gold Mining ETF is the most popular and actively traded gold miner ETF with AUM of $12.7 billion and an average daily volume of around 19 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 57 stocks in its basket. Canadian firms account for about 43% of the portfolio, while the United States (15.5%) and Australia (15%) round off the top three spots (read: ETFs to Tap on Newmont-Newcrest Takeover Deal).
Image: Bigstock
Gold Logs Big Weekly Gains in 2 Months: 5 ETF Winners
After a significant decline in recent months, gold is experiencing a surge. The bullion logged its biggest weekly gain since April, driven by the Fed pause bets. Metal miners are the biggest beneficiaries of the surge in the gold price as these 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.
Sprott Junior Gold Miners ETF (SGDJ - Free Report) stole the show, jumping 11.2% last week, followed by gains of nearly 9% each in Global X Gold Explorers ETF (GOEX - Free Report) , VanEck Junior Gold Miners ETF (GDXJ - Free Report) , US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report) and VanEck Gold Miners ETF (GDX - Free Report) .
U.S. consumer prices in June registered their smallest annual increase in over two years, reviving hopes that the Fed was nearing the end of its interest rate increases. The latest data shows that the Consumer Price Index rose 3% year over year and 0.2% over the last month. Although inflation has dropped from a peak of 9.1%, it is still significantly above the Federal Reserve's 2% target. Easing inflation indicates that the economy is stabilizing and interest rates may be declining (read: 5 ETFs to Gain as Inflation Drops to a 2-Year Low).
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion. A slowdown in the pace of rate hikes will provide some support to the yellow metal. Additionally, weakness in the U.S. dollar supported the rally in the gold price. The dollar wrapped up its worst week since November and dropped to a 15-month low, making bullion cheaper for overseas buyers.
Here’s a detailed discussion of the five ETFs mentioned earlier:
Sprott Junior Gold Miners ETF (SGDJ - Free Report)
Sprott Junior Gold Miners ETF follows the Solactive Junior Gold Miners Custom Factors Index, which measures the performance of junior gold producers with the strongest revenue growth and junior exploration companies with the strongest stock price momentum. It holds 45 stocks in its basket, with Australian firms making up the largest share at 52.7%, followed by Canada (37.9%).
Sprott Junior Gold Miners ETF has amassed $103.6 million in its asset base and trades in a lower volume of around 18,000 shares a day. It charges 53 bps in annual fees from investors.
Global X Gold Explorers ETF (GOEX - Free Report)
Global X Gold Explorers ETF provides exposure to companies involved in the exploration of gold deposits and tracks the Solactive Global Gold Explorers & Developers Total Return Index. It is home to 51 stocks. Canadian firms dominate the fund’s return at 48.2%, followed by Australia (24.6%) and Indonesia (10%).
Global X Gold Explorers ETF is unpopular and illiquid, with AUM of $39.5 million and an average daily volume of 4,000 shares. The expense ratio comes in at 0.65% (read: S&P 500 Reclaims 4,500 Level: 5 Best Stocks in ETF).
VanEck Vectors Junior Gold Miners ETF (GDXJ - Free Report)
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 57.5% of the portfolio, while Australia (16.4%) and the United Kingdom (6%) 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 5 million shares a day on average.
US Global GO GOLD and Precious Metal Miners ETF (GOAU - Free Report)
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 28 stocks in its basket. Canada takes the lion’s share at 55.2%, followed by South Africa (20.9%), Australia (12.3%) and the United States (9.7%).
US Global GO GOLD and Precious Metal Miners ETF has amassed $98.6 million in its asset base and charges 60 bps in fees per year. It trades in a volume of 36,000 shares per day on average.
Market Vectors Gold Mining ETF (GDX - Free Report)
Market Vectors Gold Mining ETF is the most popular and actively traded gold miner ETF with AUM of $12.7 billion and an average daily volume of around 19 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 57 stocks in its basket. Canadian firms account for about 43% of the portfolio, while the United States (15.5%) and Australia (15%) round off the top three spots (read: ETFs to Tap on Newmont-Newcrest Takeover Deal).
Market Vectors Gold Mining ETF charges 51 bps in annual fees.