The GO GOLD and Precious Metal Miners ETF tries to reflect the performance of the U.S. Global Go Gold and Precious Metal Miners Index, which is comprised of U.S. and international companies that earned at least 50% of their aggregate revenue from precious metals and categorizes components into four “tiers” of precious metals companies based on certain fundamental factors.
Each tier includes those having revenue per employee that is greater than the median for companies whose revenue per employees is in the top 20th percentile of the broader universe. Additionally, the screen also factors in operating cash flow per employee and gross margin.
Related: Top 34 Gold ETFs
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.
GOAU’s current top holdings include Wheaton Precious Metals Corp 10.6%, Royal Gold 9.4%, Franco Nevada Corp 9.3%, Harmony Gold Mining 4.4% and Dundee Precious Metals Inc 4.2%.
Financial advisors who are interested in learning more about the gold market can register for the Thursday, January 31 webcast here.