With Tuesday’s decline, GDX is down 23% since its March 14 peak. GDXJ is down 23.6% since its March 13 peak. Those losses are enough to have both ETFs back in bear market territory, a description that, in January or February, practically no one would have thought was possible for these ETFs.
As has been seen in the past, investors are not throwing in the towel on mining ETFs even as the funds tumble. Since the start of the second quarter, GDX and GDXJ have pulled in a combined $108 million in new assets.
Some investors are also refusing to get bearish on miners. Over the past month, the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST) have seen redemption activity while the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JNUG) have seen creation activity, according to Direxion data for the week ending May 23.
Market Vectors Gold Miners ETF
Tom Lydon’s clients own shares of JDST.