Some investors are buying into the notion of more upside for gold miners ETFs. For example, GDX has hauled in $885.4 million in new assets this year, one of the best totals among all sector ETFs. Investors have poured almost $226 million into GDXJ. [Bullish View on Gold Miners]
The impact of lower fuel prices for gold miners should not be overlooked. Miners are also benefiting from lower oil prices. Barrick Gold (NYSE: ABX), the world’s largest gold miner and the second-largest holding in GDX at 8.1% of GDX’s weight, could save up to $25 per ounce of gold produced thanks to lower diesel prices, according to Bullion Vault.
GDX is the second-most heavily traded U.S.-listed ETF, trailing only the SPDR S&P 500 ETF (NYSEArca: SPY). Only 14 ETFs, including SPY and GDX, have heavier average volume than GDXJ.
Market Vectors Gold Miners ETF
