Amplify ETFs launched a gold ETF on the New York Stock Exchange on Tuesday focused on small- and mid-cap gold and exploratory gold producers.
The Amplify Pure Junior Gold Miners ETF (NYSE Arca: JGLD) is an index-based ETF comprised of companies engaged in junior and exploratory gold mining, which seeks investment results that correspond generally to the EQM Pure Junior Gold Miners Index.
Amplify ETFs CEO Christian Magoon said JGLD provides investors with cost-efficient and pure exposure to this market segment by implementing production and revenue tests that other gold stock ETFs might lack.
“As investors increasingly allocate to gold in the current market environment, we believe the capital appreciation and diversification potential of small- and mid-cap gold and exploratory gold producers can’t be ignored,” Magoon said.
The JGLD difference is purity: Legacy junior gold mining ETFs may include silver mining stocks or be overly allocated to large-cap stocks. JGLD utilizes two important tests designed to keep the portfolio focused on junior gold mining stocks:
1) Companies cannot produce or receive royalties on more than 1 million troy ounces of gold (Result: 88% of stocks held in JGLD are small and mid-cap – as of 11/30/20);
2) Companies must meet a 75% gold revenue or deposit test for portfolio inclusion (Result: No silver mining or diversified mining stocks qualify to be in the portfolio).
To be included in the portfolio, a company must have a market capitalization equal to or greater than $100 million USD, and an average daily traded value greater than $1 million USD over the last 90 trading days. Amplify ETFs said JGLD is also one of the lowest cost gold mining ETFs, with an expense ratio of 0.49%.
Investors can learn more about JGLD at AmplifyETFs.com/JGLD.