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.
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.