Back to top

Image: Bigstock

Can Gold Mining ETFs Keep Soaring?

Read MoreHide Full Article

  • (1:00) - Can The Gold Rally Continue?
  • (4:35) - What Can We Expect From M&A Activity In The Gold Sector?
  • (6:20) - Gold Sector Stocks To Watch
  • (9:45) - How Should Investors Navigate Investing In Gold?
  • (13:45) - Bitcoin vs. Gold
  • (17:00) - Episode Roundup: Podcast@Zacks.com

In this episode of ETF Spotlight, I speak with Joe Foster, portfolio manager and strategist for gold at VanEck.

VanEck is a leader in gold investing. They introduced the first gold equity mutual fund--the VanEck International Investors Gold Fund (INIVX - Free Report) --back in 1968, which Joe has been managing since 1998. They also offer the VanEck Vectors Gold Miners ETF (GDX - Free Report) and the VanEck Vectors Junior Gold Miners ETF (GDXJ - Free Report) , which are the biggest funds in the space, and the VanEck Merk Gold Trust (OUNZ - Free Report) , which provides investors the option to take physical delivery of gold.

Gold prices surged in June, thanks mainly to investors’ search for safer assets amid rising market uncertainty and geopolitical tensions. What lies ahead for the precious metal?

Gold miners have significantly outperformed the metal over the past month as they are high-beta plays on the price of gold. GDX and GDXJ soared about 23% in June since higher gold prices are a major tailwind for producers.

The industry saw a spate of M&A activity with Newmont Mining (NEM - Free Report) acquiring Goldcorp in January to create the world’s largest gold miner, and Barrick Gold (GOLD - Free Report) buying Randgold last fall.

Should we expect further consolidation in the sector?

We also discuss some of Joe’s favorite gold mining stocks. In addition to Newmont and Barrick, he likes Agnico Eagle Mines (AEM - Free Report) , Kirkland Lake Gold and B2Gold (BTG - Free Report) . Find out more about them on the podcast.

What else do investors need to know about investing in gold miners?

We also discuss the role of gold in a diversified portfolio given its low correlation with other asset classes.

Some cryptocurrency backers have dubbed bitcoin as digital gold for the digital age. Is bitcoin gold 2.0?

To learn more about these funds, please visit VanEck.com.

Make sure to be on the lookout for the next edition of ETF Spotlight! If you have any comments or questions, please email podcast@zacks.com.

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. Get it free >>

Published in