The Market Vectors Gold Miners ETF (NYSEArca: GDX) and the Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) get most of the attention, but plenty of other gold mining funds have soared this year as well.
Add the Global X Gold Explorers ETF (NYSEArca: GLDX) to that list. While small by the standards of some mining ETFs at $43.3 million in assets under management, GLDX’s year-to-date returns are anything but tiny. The ETF is up 42%, a performance that ranks it near the top of the non-leveraged ETF group this year.
GLDX’s stats are improving. In mid-February, the fund sported a year-to-date gain of 29% with $37 million in assets.[Seven Mining ETFs to Remember]
GLDX, like the rival GDXJ, has benefited as adventurous investors looking to boost their gains in resurgent gold miners have embraced small-cap fare and GLDX is chock full of small-caps. The ETF is home to 21 stocks with an average market value of $283 million, according to Global X data. Plus, the ETF’s technical look compelling.
“GLDX is consolidating in a tight range above the rising 20-day EMA after breaking out above the 200-day MA on heavy volume. We are looking for GLDX to resume its uptrend after three to four weeks of sideways action,” said Deron Wagner of Morpheus trading Group.
Wagner adds that GLDX’s monthly chart “shows the break of downtrend line and the biggest spike in volume over the past few years during last month’s close above the 10-month moving average.” The ETF added 0.8% Thursday on volume that was more than 50% above the daily average. All that from an ETF that was reverse split last year amid the gold miners meltdown.
GLDX’s country weights are favorable with only Canadian, Australian and U.S. firms appearing in the fund, indicating the ETF is not vulnerable to geopolitical volatility as can be the case for some mining ETFs. [Country Risk and Gold Mining ETFs]
Global X Gold Explorers ETF
ETF Trends editorial team contributed to this post.