Gold Miner ETFs Soar Following Yellen’s Jackson Hole Speech

The Market Vectors Gold Miners ETF (NYSE:GDX) is one of several gold mining stocks rallying big today, on the back of Janet Yellen’s dovish commentary from the Jackson Hole summit.

Today in our ETF Fund Flows recap, we point out some very well timed buys in both GDX (Expense Ratio 0.53%) and NUGT (Direxion Daily Gold Miners Index Bull 3X, Expense Ratio 0.95%), with the funds respectively pulling about $300 million and $235 million apiece thanks to creation activity.

Following Fed chairwoman Yellen’s commentary from this morning, Gold Miners among the best performing sectors, and of course spot Gold prices are on the move too with GLD (SPDR Gold, Expense Ratio 0.40%) rallying more than 0.8%.

GDX itself is up more than 2.7% today after a vicious sell-off in the past couple days, where the fund plunged through its 50 day MA for the first time since late May. GDX, including today, has spent three trading sessions now below its 50 day MA, and it still has some considerable work to do before it challenges its recent intraday high of $31.79 that was touched eleven trading sessions ago.

GDX-2016-08-26

NUGT, being a three times daily leveraged bull fund, is up more than 5.7% today, and holders there clearly hope that a bounce in GDX is sustainable here, and not just a one day phenomenon. Trading volume in NUGT was huge on Wednesday, with volume approaching 50 million shares versus its ADV of 27 million shares.

NUGT-2016-08-26

GDX and NUGT are both the home of a considerable level of assets, as GDX has $9.5 billion in AUM, and NUGT stores $1.3 billion (which is enormous for a leveraged instrument).

GDXJ (VanEck Vectors Junior Gold Miners, Expense Ratio 0.57%) is also worth watching here, and is a fund that we have mentioned in this segment recently in the context of the greater “Junior Gold Miners” space after seeing some options activity in the name. GDXJ is the second largest “Miners” product following GDX, with $4.3 billion in assets under management.

GDXJ-2016-08-26

Other products that have traded briskly on the sharp volatility in the Miners segment this month are DUST (Direxion Daily Gold Miners Index Bear 3X, Expense Ratio 0.95%, $531 million in AUM), JNUG (Direxion Daily Junior Gold Miners Index Bull 3X, Expense Ratio 0.95%, $478 million in AUM), RING (iShares MSCI Global Gold Miners, Expense ratio 0.39%, $287 million in AUM), and JDST (Direxion Daily Junior Gold Miners Index Bear 3X, Expense Ratio 0.95%, $87 million in AUM).

About the Author: Paul Weisbruch
paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.

Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.

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