Furthermore, the ETF includes a 30% tilt to royalty and streaming companies, which could help investors better manage common risks associated with traditional producers, such as building and maintaining mines, among others. The lower risk may also diminish risk since royalty companies have historically rewarded investors by increasing dividends at a faster pace than the broader equity market.
“Royalty companies can help investors manage many common risks associated with traditional producers. Because they’re not directly responsible for building and maintaining mines and other costly infrastructure, huge operating expenses can be avoided. They also hold highly diversified portfolios of mines and other assets, which helps mitigate concentration risk in the event that one of the properties stops producing,” according to U.S. Global.
GOAU’s top component holdings include Franco Nevada Corp 10.2%, Royal Gold 10.0%, Wheaton Precious Metals 9.8%, Dundee Precious Metals Inc 4.1% and Fortuna Silver Mines 4.0%.
Country weights include Canada 60.1%, Australia 12.9%, U.S 10.9%, South Africa 9.5%, U.K. 4.6% and Switzerland 2.0%.
Financial advisors who are interested in learning more about the gold miners space can register for the Thursday, January 11 webcast here.