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Gold Mining ETFs: What You Need to Know

Neena Mishra

Gold prices have been rising of late thanks mainly to dovish turn by global central banks and investors’ search for safer assets amid rising market uncertainty and geopolitical tensions.  Gold miners are leveraged plays on the metal, as their cash flows and earnings rise significantly with the increase in gold prices.

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

The VanEck Vectors Gold Miners ETF (GDX) is the first and largest gold mining ETF. Its top holdings include Newmont, Barrick Gold and Newcrest Mining (NCMGY).

The iShares MSCI Global Gold Miners ETF (RING) is the cheapest fund in the space, with an expense ratio of 39 basis points. Its top five holdings-- Newmont, Barrick Gold, Newcrest Mining, AngloGold Ashanti (AU) and Kirkland Lake Gold (KL)—account for almost 53% of the portfolio.

The Sprott Gold Miners ETF (SGDM) is a smart beta ETF, which selects gold companies with the highest revenue growth and free cash flow yield, and the lowest long-term debt to equity. The fund recently reduced its expense ratio to 50 basis points.

To learn more about these ETFs, please watch the short video above.

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Sprott Gold Miners ETF (SGDM): ETF Research Reports
 
VanEck Vectors Gold Miners ETF (GDX): ETF Research Reports
 
iShares MSCI Global Gold Miners ETF (RING): ETF Research Reports
 
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
 
B2Gold Corp (BTG) : Free Stock Analysis Report
 
Newmont Mining Corporation (NEM) : Free Stock Analysis Report
 
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
 
AngloGold Ashanti Limited (AU) : Free Stock Analysis Report
 
Kirkland Lake Gold Ltd. (KL) : Free Stock Analysis Report
 
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