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Gold Mining ETFs Are Following In GLD’s Footsteps With Huge Inflows

It is not only gold itself via GLD (SPDR Gold, Expense Ratio 0.40%, $30.4 million in AUM) that has attracted some new assets lately as we have mentioned (over $900 million in), but now the gold miners have joined the fray as well.

GDXJ (VanEck Junior Gold Miners, Expense Ratio 0.57%, $3.4 billion in AUM) has pulled in some new monies as well in sympathy this week (more than $380 million in). The fund is comfortably above its 200 day MA now after spending the entire time period from Trump’s election until very early February below this level.

Spot gold prices themselves have evened out a bit in the month of February after steep losses that occurred from November through late December of last year, and clearly the mining stocks have stabilized along with them. GDXJ has now pulled in over $830 million just year-to-date, building its asset base above $3.4 billion, while its larger cousin GDX (VanEck Vectors Gold Miners, Expense Ratio 0.53%, $11.3 billion in AUM) has also seen some inflows to the tune of more than $194 million in.

Elsewhere in the space, the popular “Bull Levered” NUGT (Direxion Daily Gold Miners Index Bull 3X, Expense Ratio 1.05%, $1.4 billion in AUM) has seen profit taking year-to-date on this recent move higher in the Miners (-$400 million out) and JNUG (Direxion Daily Junior Gold Miners Index Bull 3X, Expense Ratio 0.95%) has seen similar with $78 million leaving the doors.

The space continues to be popular both in terms of fund asset sizes as well as average daily trading volumes, as NUGT and JNUG are the third and fourth largest funds in the space following GDX and GDXJ. GDX averages a massive 75 million shares daily while GDXJ averages 21 million shares daily, and NUGT and JNUG average a whopping 53 million and 46 million shares respectively.

DUST (Direxion Daily Gold Miners Index Bear 3X, Expense Ratio 0.95%, $242 million in AUM) is the fifth largest gold-linked ETF in the U.S. listed landscape and averages about 7.8 million shares daily.

Clearly, the space is dominated in terms of asset size by two issuers, VanEck and Direxion, with eight much smaller offerings in the niche that aren’t worth mentioning at this point.

GDXJ-2017-02-15

The Market Vectors Junior Gold Miners ETF (NYSE:GDXJ) was trading at $41.61 per share on Wednesday afternoon, down $0.18 (-0.43%). Year-to-date, GDXJ has gained 31.89%, versus a 4.71% rise in the benchmark S&P 500 index during the same period.

GDXJ currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #7 of 33 ETFs in the Precious Metals ETFs category.

You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

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