GLDX, like the rival GDXJ, has benefited as adventurous investors looking to boost their gains in resurgent gold miners have embraced small-cap fare. 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.
However, GLDX does not lack for volatility. The ETF’s beta against the S&P 500 is 1.19 with a standard deviation of 45%, according to Global X data. The comparable numbers on GDXJ on 0.93 and 44.6%.
That is to say GLDX offers the temptation and potential of big gains in short time frames without leverage. Over the past month, the ETF is up almost 32%. But as veteran traders of miners stocks and ETFs know, this group can taketh away faster than it giveth.
Global X Gold Explorers ETF