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13 hours ago
- Business
- Yahoo
Gold ETFs Shine in 1H: Will the Bloom Continue in 2H?
Gold has been on a powerful upward trajectory this year, fueled by strong safe-haven demand amid Trump's tariff chaos and escalating geopolitical tensions, weakening U.S. dollar and growing expectations of Federal Reserve rate cuts. The yellow metal has posted monthly gains for five straight months as of May, its longest run since 2017. It hit a new all-time high of $3,500 in April and then retreated from this level. Gold has moved up 27% since the start of the to a report by Axis Securities, gold is on track to reach a milestone with a six-month winning streak not seen in over two decades (read: Gold Up 27% YTD: How Long Will the Rally Last?).Given the surge in gold prices, gold mining ETFs are blooming in the first half, with many analysts expecting further gains in the second half. The mining companies act as leveraged plays on the underlying metal prices and, thus, tend to experience more gains than their bullion cousins in a rising metal Gold Miners ETF SGDM is leading the pack, jumping 65% since the start of the year, followed by gains of 63.7% for Themes Gold Miners ETF AUMI, 61% for VanEck Junior Gold Miners ETF GDXJ, 59.7% for Global X Gold Explorers ETF GOEX, and 58.8% for iShares MSCI Global Gold Miners ETF have highlighted several reasons for the solid rally in gold and its outlook: President Donald Trump's set of tariffs has lured investors to shift to defensive investments. Gold is often used to preserve wealth during financial and political uncertainty and usually does well when other asset classes struggle. Additionally, the inflationary pressure caused by new tariffs will benefit the precious metal's status as a hedge against rising prices. A weaker dollar and sustained central bank buying also buoyed gold's rally this year. The central banks are dominant buyers of gold as they seek to diversify their reserves away from the U.S. dollar. According to a recent survey conducted by the World Gold Council, about 95% of central banks believe their gold reserves will increase over the next 12 months. Though the Fed has kept interest rates steady at the latest meeting, an imminent rate cut can be in the cards in the next couple of months. Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, increasing its attractiveness over fixed-income investments such as now forecast gold to trade between $3,500 and $3,700 as investors seek refuge from escalating geopolitical tensions and rising inflation risks. Goldman Sachs reiterated its bullish long-term view on gold, highlighting strong central bank demand. Goldman forecasts gold to reach $3,700 by the end of 2025 and $4,000 by mid-2026. In a recession scenario, accelerating ETF inflows can lift gold to $3,880 by year-end. Year to date, the two largest gold ETFs — SPDR Gold Shares GLD and iShares Gold Trust IAU — have attracted more than $11 billion in combined inflows, according to SPDR Gold Shares alone has taken in nearly $7 billion, ranking it No. 13 among all ETFs by asset flows (read: Why Gold ETFs Offer the Best Safe Haven Right Now). Let us delve into each ETF below:Sprott Gold Miners ETF (SGDM)Sprott Gold Miners ETF follows the Solactive Gold Miners Custom Factors Index, which aims to track the performance of larger-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges. It holds 37 stocks in its basket. Canada takes the top spot at 75.2%, followed by 17.6% in the United States. Sprott Gold Miners ETF has amassed $418.6 million in its asset base and trades in a lower volume of around 42,000 shares a day. It charges 50 bps in annual fees from investors. Themes Gold Miners ETF (AUMI)Themes Gold Miners ETF seeks to track the Solactive Global Pure Gold Miners Index, which identifies the largest 30 companies by market capitalization, deriving their revenues from gold mining. It holds 28 stocks in its basket, with Canadian firms accounting for 58.6% of the portfolio, followed by Australian firms with a 27.5% share. Themes Gold Miners ETF has accumulated $10.4 million in its asset base. It charges 35 bps in fees per year and trades in a lower average daily volume of 7,000 Junior Gold Miners ETF (GDXJ) VanEck Junior Gold Miners ETF offers exposure to small-capitalization companies that are involved primarily in the mining of gold and/or silver and tracks the MVIS Global Junior Gold Miners Index. Holding 92 stocks in its basket, Canadian firms dominate the fund's portfolio with a 47.8% share, whereas Australia (20.4%) and South Africa (6.4%) round out the top three. VanEck Junior Gold Miners ETF has an AUM of $5.7 billion and charges 51 bps in annual fees. It trades in a heavy volume of around 5 million shares a day on X Gold Explorers ETF (GOEX) Global X Gold Explorers ETF provides exposure to companies involved in the exploration of gold deposits and tracks the Solactive Global Gold Explorers & Developers Total Return Index. It is home to 51 stocks. Canadian firms dominate the fund's return at 54.1%, followed by Australia (27.6%) and the United States (8.8%). Global X Gold Explorers ETF is unpopular and illiquid, with an AUM of $66.5 million and an average daily volume of 17,000 shares. The expense ratio comes in at 0.65% (read: Should You Buy Gold or Gold Miners Now?).iShares MSCI Global Gold Miners ETF (RING) iShares MSCI Global Gold Miners ETF offers exposure to companies that derive the majority of their revenues from gold mining. It follows the MSCI ACWI Select Gold Miners Investable Market Index and holds 42 securities in its portfolio. Canadian firms take more than half of the portfolio, while the United States takes the next spot at 17.2% share. RING is the cheapest choice in the gold mining space, charging just 39 bps in fees and expenses. iShares MSCI Global Gold Miners ETF has been able to manage assets worth $1.5 billion and trades in a good volume of 275,000 shares per day. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Gold Shares (GLD): ETF Research Reports iShares Gold Trust (IAU): ETF Research Reports VanEck Junior Gold Miners ETF (GDXJ): ETF Research Reports iShares MSCI Global Gold Miners ETF (RING): ETF Research Reports Sprott Gold Miners ETF (SGDM): ETF Research Reports Global X Gold Explorers ETF (GOEX): ETF Research Reports Themes Gold Miners ETF (AUMI): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
31-03-2025
- Business
- Yahoo
Gold Mining ETF (SGDM) Tops in Q1: 5 Best-Performing Stocks
Sprott Gold Miners ETF SGDM, which offers exposure to gold stocks, has gained 31.6%, becoming the best-performing ETF of the first most of the stocks in SGDM's portfolio delivered strong returns, a few have gained more than 50%. These include Orla Mining Ltd. ORLA, SSR Mining Inc. SSRM, Gold Fields Limited GFI, Harmony Gold Mining Company Limited HMY and AngloGold Ashanti PLC mining stocks and ETFs are outperforming this year, driven by a surge in gold price. Mining companies act as leveraged plays on the underlying metal prices and thus tend to experience more gains than their bullion cousins in a rising metal market (read: Gold Mining ETFs Shine Amid Market Rout).Gold has been on an unstoppable rally and recently breached the 3,050 level. The strong safe-haven demand amid economic uncertainties triggered by U.S. President Donald Trump's trade tariff war and escalating geopolitical tensions, as well as potential rate cuts, drove the rally. Gold is often used to preserve wealth during financial and political uncertainty and usually does well when other asset classes struggle. Additionally, the inflationary pressure caused by new tariffs will benefit the precious metal's status as a hedge against rising the latest meeting, Fed Chair Jerome Powell kept interest rates steady and maintained the two-rate cut projections for this year. Lower interest rates will continue to support gold prices as these raise the yellow metal's attractiveness compared with fixed-income assets such as bonds. Notably, gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity costs of holding the non-yielding from these, central banks are among the major drivers of gold prices. Banks are dominant buyers of gold as they seek to diversify their reserves away from the U.S. dollar. In particular, China extended its purchases for the fourth consecutive month in February. According to the latest report from the World Gold Council, global gold demand reached a record high in 2024, driven by sustained central bank buying and growth in investment demand. Central banks accumulated more than 1,000 tons of gold for the third consecutive year (read: Gold ETFs at All-Time High as Bullion Surges Past $3000). Let us take a closer look at the fundamentals of SGDM. Sprott Gold Miners ETF follows the Solactive Gold Miners Custom Factors Index, which aims to track the performance of larger-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges. It holds 35 stocks in its basket, with Canadian firms taking the top spot at 79.2%, followed by 18.7% in the United States. Sprott Gold Miners ETF has amassed $321.7 million in its asset base and trades in a lower volume of around 44,000 shares a day. It charges 50 bps in annual fees from investors. Orla Mining is primarily engaged in developing the Camino Rojo Oxide Gold Project, an advanced gold and silver open-pit and heap-leach project located in Zacatecas State, central Mexico. The stock has skyrocketed 63% since the start of the year and accounts for a 3.4% share in the ETF. It has an estimated earnings growth rate of 84% for this Mining has a Zacks Rank #3 (Hold) and a VGM Score of Mining is a mining company focused on the operation, development, exploration and acquisition of precious metal projects. The company primarily explores for gold, silver, and mineral properties. The stock has jumped 60% so far this year and accounts for a 0.4% share in SGDM's basket. It has an estimated earnings growth rate of 185.7% for this Mining currently has a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Fields is one of the world's largest unhedged gold producers, with operating mines in South Africa, Ghana and Australia. The stock has soared 55.8% and accounts for a 1.27% share in the ETF. Gold Fields has an estimated earnings growth of 40.1% for this has a Zacks Rank #4 (Sell) and a VGM Score of Gold conducts underground and surface gold mining. It is engaged in related activities such as exploration, processing, smelting and refining. The stock has surged 54.2% since the start of the year and accounts for a 0.39% share in the ETF. Harmony Gold has an estimated earnings growth of 10.2% for the fiscal year (ending June 2025) and has a Zacks Rank #4. It has a VGM Score of B (read: Gold (GLD) or Gold Mining (GDX): Which ETF is Better?).AngloGold operates as a gold mining company in Africa, the Americas and Australia. The company explores for gold. AngloGold has gained 51% so far this year and accounts for a 0.94% share in the ETF. AngloGold has an estimated earnings growth rate of 12.7% for this year but has a Zacks Rank #5 (Strong Sell). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AngloGold Ashanti PLC (AU) : Free Stock Analysis Report Gold Fields Limited (GFI) : Free Stock Analysis Report Harmony Gold Mining Company Limited (HMY) : Free Stock Analysis Report Sprott Gold Miners ETF (SGDM): ETF Research Reports Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report Orla Mining Ltd. (ORLA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
