As ETF Trends noted last month, GDXJ’s underlying index is undergoing some significant changes after the ETF became one of the largest shareholders in several of it holdings.
From April 26 through May 2, GDX and GDXJ lost nearly $1.4 billion in assets combined. No ETF saw larger outflows over that period than did GDX. Year-to-date, GDX has lost nearly $309 million in assets while GDXJ has added nearly $860 million in new assets.
Aggressive traders willing to bet on more declines for gold miners can consider the Direxion Daily Gold Miners Bear 3X Shares (NYSEArca: DUST) and the Direxion Daily Junior Gold Miners Index Bear 3X Shares (NYSEArca: JDST).
GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies. Nevertheless, gold assets may have further room to fall if the U.S. dollar and real bond yields continue to rise.
For more information on the gold market, visit our gold category.