The Market Vectors Gold Miners ETF (GDX) takes a different approach to investing in gold than most other ETF’s. This one instead of purchasing gold bullion, it invests in the companies that mine gold. This is an ETF from Van Eck Global that attempts to mirror the performance of NYSE Arca Gold Miners Index.
This ETF has its assets invested in many countries of the world including Canada with 60.2%, the US has 13.9%, South Africa has 13.2% Peru has 4.3% UK has 4.3% and Australia has 4.1% of the assets as a total. There are a total of 31 companies in which this ETF has invested in with an annual turnover rate of 12%. The top ten holdings account for 72.33% of the total assets.
The inception date of this ETF was on May 16, 2006 and since then has had a performance of 5.33%. The one year performance was at 38.00% on December 31, 2009 with a 3 year return of 6.13%. The expense ratio of this fund is at 0.55%. The volatility measures of this fund are a beta at 1.85 vs. gold bullion, an R squared of 1 and a standard deviation of 48.06.
The average daily trading volume of this ETF is at 11.5 million shares with a current price of $49.24 as of May 6, 2010.
Morningstar rates this ETF with 2 stars that is an average risk with below average returns. The price of gold has a great influence over this ETF. With the one month change in gold price being an increase of $39.50 or 3.48%, this investment is still going up in value.
If ETF investing in gold is in your future, this is a good choice so the bumps of the gold market can be ridden out easier. The Market Vectors Gold Miners ETF (GDX) is a solid investment since the world always needs more gold and mines are where it comes from.
For additional resources about ETF on this website, please view Direxion Financial Bear 3X ETF.
If you would like other investing news from Vanguards then please try Janus Twenty Fund Review on our sister site topperformingmutualfunds.net or Vanguard 500 Index Investor Fund Review on bestmutualfundsnow.com for other investing news.
We strive to bring you the latest and most accurate data possible from the home sites of the investment institutions we name. Always remember the bigger the risk, the larger the reward or loss. Invest with caution.
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