Two underperforming ETF sectors – emerging markets and gold miners – were leading the market higher Thursday as comments from Federal Reserve Chairman Ben Bernanke caused investors to rethink their stance on the future of the Fed’s bond buying program and low interest rates.
Market Vectors Gold Miners (NYSEArca: GDX) was up 5% in morning trade while Direxion Daily Gold Miners Bull 3x Shares (NYSEArca: NUGT), a 300% leveraged ETFs, jumped more than 15%. [ETF Chart of the Day: Gold Miners]
Gold miner stocks were getting a reprieve after a deep slump this year along with bullion prices. GDX was down 50% so far this year heading into Thursday’s rally.
Gold prices also vaulted higher Thursday after Bernanke said the Fed would likely keep short-term interest rates near zero even if the unemployment rate falls to the central bank’s target of 6.5%. [Gold, Silver ETFs Ripping on Bernanke Dovish Comments]
Another beaten-down sector, emerging market ETFs, were also on the mend Thursday with iShares MSCI Emerging Markets (NYSEArca: EEM) and $2.1 billion from Vanguard FTSE Emerging Markets (NYSEArca: VWO) both up more than 3%. [Mean Reversion Time for Emerging Market ETFs?]