The bank also sees the potential for up to 60% upside in Goldcorp (NYSE: GG), the second-largest holding in GDX at a weight of 12.6%. Assuming the bank is correct, investors could capture even more upside in New Gold (NYSE: NGD) as the bank’s forecast on that name is about 65% above current levels. New Gold is 2.1% of GDX’s weight. [Tax-Loss Selling Could Plague Mining ETFs]
J.P. Morgan also has a $28 price target on Newmont Mining (NYSE: NEM). The stock, GDX’s third-largest holding with a weight of 8.4%, trades around $23.
Those looking for a no-expiration call option on a rebound in small-cap silver miners can consider the PureFunds ISE Junior Silver Small Cap Miners/Explorers ETF (NYSEArca: SILJ). Though not a leveraged ETF, SILJ can pack a punch. For example, there was a five-day stretch in August when the ETF shot to around $13.50 from around $10.
Market Vectors Gold Miners ETF
ETF Trends editorial team contributed to this post.