The point is it can be tricky to trade smaller cap internationally based names in “off hours,” especially in times of market distress.
Any brave participant that is looking to trade the Miners at this juncture can expect abnormal intraday volatility and a surge in overall volume in the space because it has attracted a horde of new, shorter term oriented investors.
How have ETF institutional managers reacted to the recent plunge here? In GDX, more than $418 million has flowed into the fund in recent sessions and has net gained $525 million YTD (the fund has a total of $4.2 billion in assets under management and remains the second largest broadly categorized “Commodity Producers Equities” ETF in terms of asset size.
GDXJ, in spite of the recent put interest and fall in its underlying price, has still net attracted assets YTD (+$117 million) and is roughly flat in terms of net flows in recent sessions.
Other Mining related ETFs to watch closely here include XME (SPDR S&P Metals & Mining, Expense Ratio 0.35%), PICK (iShares MSCI Global Metal & Mining Producers, Expense Ratio 0.39%), SIL (Global X Silver Miners, Expense Ratio 0.65%), and RING (iShares MSCI Global Gold Miners, Expense Ratio 0.39%). Finally, a leveraged product tied to the Miners has seen its highest attention and volume ever in recent sessions since inception, NUGT (Direxion Daily Gold Miners Bull 3X, Expense Ratio 0.95%). DUST (Direxion Daily Gold Miners Bear 3X, Expense Ratio 0.95%), which is the three times daily leveraged “Bear” fund to the Miners, has been notably more quiet.
For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at [email protected].
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