ETF Daily News
Has The Junior Gold Mining ETF Lost Its Luster?
March 08, 2012
As gold prices drop, ETFs targeting gold mining companies are correcting downward too—none more than the Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ), which suffers from a lack of exposure to the U.S. dollar, according to an article on Zacks.
Gold-mining ETF losses, including those of the Market Vectors Gold Miners ETF (NYSEArca: GDX), have all outpaced the recent drop seen in gold prices. GDX has fallen 8.6 percent over the past five days, though GDXJ declined 12.3 percent, the Zacks report said.
GDXJ has just 14 percent of its portfolio in dollar securities, while nearly all of GDX’s holdings are in dollars—even those that aren’t U.S.-based companies, Zacks said.
For the full story on gold and gold-related funds, visit Zacks.com.