GDX has fallen 36% the past six months.
GDX and other funds in the category “generally trade as a leveraged play on the underlying commodities, so when gold prices are slumping, these mining ETFs are truly hurting,” Zacks reports.
“This has particularly been the case as of late, as the double whammy of weak gold prices and a strong dollar has hurt operations of these firms,” Zacks notes. “This is even more true for gold miners that have heavy international operations, as repatriation from foreign currencies back to U.S. dollars adds to their woes even more.”
Market Vectors Gold Miners
Full disclosure: Tom Lydon’s clients own GLD and SLV.