Volatility is also increasing in the already volatile leveraged miners ETFs. The most volatile bullish leveraged ETFs in the Direxion stable over the 30-day period ending July 8 were the Direxion Daily Junior Gold Miners Index Bull 3x Share (NYSEArca: JNUG) and the Direxion Daily Gold Miners Bull 3X Shares (NYSEArca: NUGT), according to issuer data.
The Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST) and the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) were Direxion’s most volatile bearish ETFs over the same period.
GDX has a three-year standard deviation of 30.2%, according to Market Vectors data. Underscoring an important difference between the two ETFs, GDXJ’s three-year standard deviation is almost 42%.
Gold Bugs Index/S&P 500 Ratio
Chart Courtesy: Kimble Charting Solutions
Tom Lydon’s clients own shares of GLD and JNUG.