Meanwhile, JDST seeks daily investment results, before fees and expenses, of 300% or 300% of the inverse (or opposite) of the performance of the MVIS Global Junior Gold Miners Index.
Gold Selling Pressure
The fund has about $2.30 billion in assets under management, but its departures from gold mining equities have been enough to roil markets, particularly because that selling is happening as the price of gold slumps. Alone, falling gold prices are usually enough to send investors fleeing gold mining stocks and ETFs such as GDX.
“The move, which has triggered heavy selling of gold mining stocks since Vanguard initially unveiled its plan in late July, is another sign of how investors have fallen out of love with the yellow metal,” according to Seeking Alpha.
Without a substantial rebound in gold prices, it is hard to predict when the miners will bounce back.
“A lackluster gold price has been a key reason behind the sector’s dismal performance this year, but the gold mining industry also has lost the trust of big institutional investors after years of overspending and excessive executive pay,” notes Seeking Alpha.
For more information on the gold market, visit our gold category.