Gold mining ETFs are rallying with the bullion, with the Themes Gold Miners ETF (NASDAQ:AUMI) reaching a 52-week high on Friday at $74.89 — up around 121% from lows.
Since the end of July, AUMI has outperformed the Invesco QQQ Trust ETF (NASDAQ:QQQ) by more than 40% (93% year-to-date), stealing the spotlight from the once-dominant "Magnificent 7" tech giants. QQQ mirrors the Nasdaq 100 index, thus being considered a proxy to the index itself.
AUMI is outperforming the gold bullion as well as the tech sector. Check its prices, live.
ETFs In Focus
Themes Gold Miners ETF: AUMI provides leveraged exposure to worldwide mining companies and has been one of the industry’s strongest performers so far this year. Its operating leverage positions it to beat bullion’s advance many times, as it did with its triple-digit increase from 2024 troughs. The fund gained 3.4% in the past week.
VanEck Gold Miners ETF (NYSE:GDX): The first gold miners ETF in the U.S., and one of the most liquid ones, GDX contains established producers such as Newmont Corporation (NYSE:NEM) and Barrick Mining Corp (NYSE:B). It has risen solidly along with gold’s 40% increase this year, surging 97.4% YTD. The fund gained 3.7% in the past week. The fund has outperformed the QQQ by more than 82% YTD.
VanEck Junior Gold Miners ETF (NYSE:GDXJ): Concentrating on small, growth-oriented miners, GDXJ is more volatile but has produced disproportionate returns in previous gold bull markets. It has attracted increased investor enthusiasm as bullion breached inflation-adjusted highs. Year-to-date, the fund has gained more than 100%, and in the past five days, it has gained more than 4%. The fund has outperformed the tech sector (QQQ, considering the proxy) by almost 86% YTD.
Although physically backed funds such as SPDR Gold Trust (NYSE:GLD) and iShares Gold Trust (NYSE:IAU) continue to be in vogue for direct exposure, miners ETFs are also being seen more as higher-octane options, providing equity leverage as well as gold’s safe-haven attributes.
Also Read: Inflation’s Back On The Radar—These ETFs Could Be Your Shield
Macro Tailwinds
Bullion traded around $3,640 an ounce on Monday following four consecutive weeks of increases. Traders anticipate a rate cut from the Fed this week, with further easing on the table into early next year as labor market weakness persists. Lower Treasury yields and a softer dollar enhance gold’s attractiveness, while central bank buying and political tensions — ranging from Trump’s haranguing of the Fed to continuing U.S.-China trade negotiations — add to the impetus. Goldman Sachs forecasts bullion could hit $5,000, a forecast that can continue to underpin miners ETFs.
The result: while the "Magnificent 7" tech giants are handling growing concerns about an “AI bubble”, gold miner ETFs are running the show, giving investors a new set of market leaders in an era of monetary easing and geopolitical tension.
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