Investors who want to capitalize on the gold rally are increasingly opting for gold miners ETFs, which provide exposure to gold mining stocks rather than the bullion, often amplifying gains and losses. Some of the most important options available in the market are:
VanEck Gold Miners ETF (NYSE:GDX) – The largest and most liquid, with one-month average volume of 19.69 million shares and $21.44 billion in assets. Tracks a broad portfolio of leading gold mining companies. Prices of this fund have appreciated 105% year-to-date (YTD).
Sprott Gold Miners ETF (NYSE:SGDM) – Suitable for momentum investors, SGDM reached a 52-week high on Monday. It tracks the Solactive Gold Miners Custom Factors Index, targeting large-cap gold miners on Canadian and US exchanges. The fund is up 105% YTD.
VanEck Junior Gold Miners ETF (NYSE:GDXJ) – Targets smaller, higher-risk gold mining firms, providing the possibility of higher returns. The fund has gained almost 108% this year so far.
Sprott Junior Gold Miners ETF (NYSE:SGDJ) – An inexpensive option with a 0.50% yearly fee, focusing on smaller miners with potential for growth. The fund is up 94% YTD.
The ETFs have proven popular in a context of macroeconomic uncertainty, increasing gold prices, and global central banks adding gold to their reserves. Gold has risen around 10% over the last month and 42% year-to-date, boosted by safe-haven buying, Fed cuts, and the declining U.S. dollar.
Also, U.S. gold reserves have fallen to their lowest level in 90 years, contrasting sharply with the rest of the world's central banks, which are amassing gold at levels not seen in nearly half a century. At one time, the U.S. held over 50% of the world's reserves; today, that share is just 20%, while global gold holdings outside the U.S. have reached a 49-year high. Macro strategist Otavio Costa of Crescat Capital observes that this divergence could potentially lead to U.S. policymakers reconsidering their position.
Continued expectations of Fed rate reductions also bolster gold’s rally. As per the CME FedWatch tool, there’s a 94.1% chance of a reduction in October and a 75.2% chance in December. Reductions in interest rates weaken the U.S. dollar, making gold a favorite among foreign investors. The U.S. Dollar Index has declined around 10% year-to-date, enhancing gold’s appeal.
For investors seeking to hedge against market volatility while potentially profiting from gold’s upward trajectory, the miners ETFs offer a strategic entry point. GDX and SGDM offer liquidity and potential growth, whereas GDXJ and SGDJ provide a higher-risk, higher-reward investment opportunity in junior miners. As long as gold fundamentals remain strong and macro risks continue to build, these ETFs could continue to attract investor eyeballs well into 2026.
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