An exchange traded fund that invests in gold miners pared its gains Tuesday after an early rally, following the fund’s recent breakout.

Market Vectors Gold Miners (NYSEArca: GDX) was fractionally positive after rallying as much as 3%. Last week, the miners ETF rose to a new 52-week high in its third attempt at this resistance level over the past year.

The fund, which invests in miner stocks rather than gold bullion, was one of the top-performing ETFs in August. [Gold Miners ETF Near All-Time High]

Many gold miners are sitting on large cash reserves and are trading at single-digit price-to-earnings (P/E) ratios, ETFTrends.com’s Tom Lydon told CNBC in a recent appearance. He noted that if miners can extract gold for around $1,000 an ounce and sell it for $800 to $900 an ounce higher, the profitability is “huge.” [Tom Lydon on CNBC: Gold as Momentum Play]

Market Vectors Junior Gold Miners (NYSEArca: GDXJ) is an ETF that invests in small-cap miner stocks. It was down nearly 2% at last check.

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