If you remember my ETF Talk from last week, I showcased a silver mining fund that was up 140% as part of a new theme that focuses on mining company exchange-traded funds (ETFs). Those mining funds have seen enormous share-price appreciation in recent months due to the boom in precious metals and related sectors.
While such impressive gains are hard to replicate, I’m pleased to announce that I have found a gold mining ETF that also has seen triple-digit percentage gains so far this year. That exchange-traded fund is the Global X Gold Explorers ETF (GLDX).
GLDX started in 2010 and is part of the Global X Funds company, a New York-based provider of exchange-traded funds that offers investment opportunities in both U.S. and foreign exchanges. Specifically, GLDX provides investors with access to a broad range of companies that are involved in the exploration of suitable gold deposits through the Solactive Global Gold Explorers Total Return Index.
Year to date, GLDX’s performance has been nothing but impressive. Its share price has more than doubled since the beginning of the year, equating to about a 110% increase since the markets first opened in 2016. It is the second-best performing mining fund year to date, beating all but the Purefunds ISE Junior Silver ETF (SILJ).
Unlike many other funds and stocks, GLDX’s chart shows no sign of a potential “bust cycle,” which first can be seen as a sideways trend over time in the line tracking a fund’s share price. With $64 million in assets under management, GLDX is neither tiny nor huge, and has approximately double the assets of SILJ. The fund offers a 5.3% yield with an expense ratio of 0.65%.
GLDX’s portfolio is nearly 90% stocks, with its top 10 holdings — all related to gold and precious metals mining — comprising 68.72% of total assets. Some of the top holdings include First Mining Finance Corp., 13.20% of assets; Sabina Gold and Silver Corp., 8.26% of assets; and Oceana Gold Corp., 6.84% of assets.
If the prospect of investing in gold and silver mining companies excites you, then I’d recommend checking out the Global X Gold Explorers ETF (GLDX) further.
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As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.