Analyst Blogs
The South African Rand And Gold Miner ETFs
October 10, 2012
Going back to the currency risk, these two funds also avoid exposure to the rand. But they take on the risk of holding firms in their infancy. In other words, you are trading one risk (currency), for another (viability).
That trade-off hasn’t been worthwhile, as GDXJ and GLDX were the two worst performers since March—even after accounting for the negative impact of the rand’s free fall on the broader portfolios of funds like the Market Vectors Gold Miner ETF (NYSEArca: GDX) and the Global X Pure Gold Miners ETF (NYSEArca: GGGG).
Moving forward, it remains to be seen if there will be any resolution to the labor disputes in South Africa. If the negotiations and violence are protracted, the rand’s sell-off could continue indefinitely.
Unfortunately, those looking to play a run-up in gold prices via the equity market will have little shelter from the storm unless they shift gears and buy the metal itself, or are comfortable making a higher-beta bet via the riskier, early-stage mining firms.
If only it were easier.
  Previous Page | 1 | 2 | | Full Article |Next Page  |
3 Signs We’re Exceeding Our ETF Yield Reach
Finding income in a world of paltry yields is all well and good, but at what cost?
FINRA’s Wrongheaded Ruling On Backtesting
A FINRA ruling on backtesting for new ETFs serves as a reminder of how not to invest.
New iShares Factor ETFs Have Worthy Tilts
Enhancing its factor-based ETF lineup, the firm offers three new cheap and noteworthy funds.
KraneShares China Bond ETF To Stand Out
In the young and as-yet-undeveloped ‘dim sum’ bond market, the upstart ETF firm KraneShares looks for a niche.iShares Makes New Active ETFs Dirt Cheap
Will the low-low expense ratios on iShares’ new active equity funds be enough to generate buzz?VXX May Be Losing Its Hedging Mojo
Using VIX-based ETPs to hedge equity positions has never been easy or cheap. Is it now less effective too?
The Gold ETF/Physical Gold Disconnect
Thanks to ETFs, the recent sell-off in gold may be less real than it looks.The Hot Bernanke ETF Trade
Last week’s big bond ETF inflows makes you wonder just what institutions know about the Fed.Gold ETF Returns Show Huge Disparity
In the recent gold plunge, not all ETFs are equal.Index Firms Matter More Than You Think
ETF issuers have made a lot of high-profile moves in the index space lately. That doesn’t mean those moves are the best decisions for investors.
