Throughout most of the fourth quarter of 2023, physical gold has performed the best it has all year. According to Kitco in the last thirty days, the precious metal has seen its price increase by nearly $43. The precious metal last week briefly crossed above $2,100 per ounce, reaching new all-time highs.
However, in December, the trajectory of gold’s price during most of the quarter has fallen back a bit. The precious metal’s price is now in the low $1,980s. Although gold’s price rally has slowed down in December, experts are still calling for it to have an outstanding 2024, and investors may want to find a way to get some exposure to it.
ETFs that hold gold mining companies are one route to consider, although they represent indirect access to the metal’s performance. However, gold miner ETFs are especially good for investors who have a strong conviction that gold will perform well and that mining companies will benefit from the metal’s upswing. This article will explore the recent performance and key characteristics of a pair of gold miner ETFs from VanEck.
See More: “Gold’s Q4 Rally Continues, Experts Calling for an Even Better 2024“
VanEck Gold Miners ETF (GDX)
The VanEck Gold Miners ETF (GDX) currently has nearly $13 billion in assets under management. The 17-year-old fund also has an expense ratio of 0.51% which is slightly lower than its FactSet segment average according to ETFDB.com. GDX tracks is the NYSE Arca Gold Miners Index, which tracks the performance of the largest gold mining companies in the world.
The fund holds U.S. companies like Newmont Corp., Barrick Gold Corp., Agnico Eagle Mines Ltd, and Wheaton Precious Metals Corp. These four companies sit at the top of the fund’s holdings. The top performer year-to-date among those four is Wheaton Precious Metals Corp, which returned more than 17%, according to Google Finance.
At an international level, the fund offers exposure to Gold Fields Ltd. (South Africa), Northern Star Resources Ltd (Australia), Zijin Mining Group Co., Ltd. (Hong Kong) and Endeavour Mining Plc (Canada).
See More: “3 Different Ways to Get Exposure to Gold in 2024“
VanEck Junior Gold Miners ETF (GDXJ)
The VanEck Junior Gold Miners ETF (GDXJ), a nearly fifteen-year-old fund, is another product for investors and advisors to consider. GDXJ currently has an AUM of more than $4 billion and an expense ratio of 0.52%. Its underlying MVIS Global Junior Gold Miners Index provides exposure to several of the top small-cap gold miners. Similar to GDX, GDXJ provides exposure to companies at the global level.
Its top holdings include Kinross Gold Corp., Pan American Silver Corp., Alamos Gold Inc., and B2gold Corp. Out of those four companies, Kinross Gold Corp. and Alamos Gold Inc. are the best performers, up more than 20% in 2023. according to Google Finance.
The fund also offers exposure to nine countries outside of the US, including Australia, Canada, the UK and Mexico.
Performance
During physical gold’s fourth-quarter rally, both funds have posted double-digit returns. GDXJ outstripped its sister fund with a return of 11.85% versus GDX’s increase of 9.81%. Year to date GDX has posted a 3.11% return, while GDXJ is up 1.12%.
For more news, information, and analysis, visit the Beyond Basic Beta Channel.
