Due to their low cost and convenience of trading, exchange-traded funds (ETFs) have continued to grow more popular among investors. In particular, stock traders and investors seeking exposure to precious metals, particularly gold, may be interested in gold ETFs that provide various exposure options to the gold sector.
In this article, we’ve identified four gold miner ETFs that have not only been trading to the upside lately, demonstrating favorable bullish momentum, but also those that pay a dividend to investors. Dividend-paying exchange-traded funds are notable for providing some risk protection, especially in volatile markets, as well as income to investors who keep and invest in them over the long term.
Dividend yields are not supplied by gold ETFs that invest in the physical metal or gold futures contracts. Still, they are available with equity-based gold ETFs that invest in the stocks of companies active in the gold industry.
#1 VanEck Vectors Gold Miners ETF (NYSEArca: GDX)
Since its inception in 2006, the VanEck Vectors Gold Miners ETF (GDX) has grown to have net assets of around $14.5 billion as of November 2021, rendering it one of the most significant and most commonly traded gold exchange-traded funds in the world.
This fund is generally invested at least 80% in stocks that are constituents of the NYSE Arca Gold Miners Index, which measures the overall performance of firms engaged in the gold mining sector.
Three companies that makeup almost one-third of the fund’s total assets, Newmont Mining Corp., Barrick Gold Corp, and Franco-Nevada Corp., are among its largest holders. There is a 0.52% expense ratio for this investment, and it pays a dividend yield of 0.55%.
Things are heading in the right direction because of the positive short-term trend and the neutral long-term trend.
GDX has been trading in a wide range of $30.96 – $35.01 during the last month. In terms of price, it is now trading towards the top of this range. Additionally, given the rapid growth in recent months, it may be wise to delay purchasing until consolidation or decline occurs.
Nonetheless, resistance is located at $37.37 from a weekly trend line, while support is located at $30.22 from another weekly trend line.
#2 VanEck Vectors Junior Gold Miners ETF (NYSEArca: GDXJ)
Van Eck introduced the VanEck Vectors Junior Gold Miners ETF (GDXJ) in 2009, and it now has around $5 billion in net assets as of November 2021. With this supplemental product to Van Eck’s bigger GDX ETF, investors may get exposure to gold mining companies with modest market capitalization values.
Its purpose is to replicate the performance of the Market Vectors Global Junior Gold Miners Index, which was created to replicate the performance of small- and mid-cap firms that get the majority of their income from gold and silver mining, among other things.
Company names such as Pan-American Silver, Evolution Mining Limited, and Endeavor Mining plc are among those included in the ETF’s portfolio.
Compared to large funds, the portfolio’s composition is significantly more diversified, with the top 10 holdings accounting for just 36.3% of the portfolio’s total assets. Additionally, the fund has an expense ratio of 0.53% and a dividend yield of 2%.
Although GDXJ has been a moderate performer in the broader market, recent activity has been quite good. Additionally, during the previous month, GDXJ has traded in a range of $42.12 to $48.25, which is broad, regardless of the fact that it is presently trading at the range’s top.
Given the rapid rise in prices recently, it may be prudent to wait for stabilization or a fall before contemplating an entrance. Support is shown at $39.75 from a weekly trend line, while two resistance levels can be seen from a weekly trend line, the first at $50.61 and the second at $54.72 from a weekly horizontal line.
#3 Sprott Gold Miners ETF (NYSE Arca: SGDM)
With a portfolio of more than 25 gold and silver mining equities, the Sprott Gold Miners ETF (SGDM) is intended to track the performance of the Sprott Zacks Gold Miners Index. The index is separated into three tiers depending on revenue growth and the debt-to-equity (D/E) ratio; the underlying index comprises gold and silver equities listed on US exchanges.
The fund, established in 2014, has net assets of $246 million as of November 2021. A number of significant holdings, such as Newmont Mining Corp., Franco-Nevada Corp., and Barrick Gold, account for more than a quarter of the fund’s overall asset base. While t the fund has an expense ratio of 0.5% and pays a dividend yield of 0.32%.
Both the short-term and long-term trends are positive, which is a positive sign; it is now hovering around the $26.49 to $30.22 price point for the last month. The ETF is currently trading at the upper end of its current trading range, which is bullish.
A weekly trend line provides support at $29.86, whereas a range of $27.70 to $28.54 serves as a support level formed by multiple trend lines and key moving averages in various time periods.
#4 iShares MSCI Global Gold Miners ETF (NasdaqGM: RING)
BlackRock introduced the iShares MSCI Global Gold Miners ETF (RING) in 2012, and as of November 2021, its net assets were valued at $530 million.
In this ETF, the performance of enterprises in established and developing market nations whose principal income source is gold mining is tracked against the performance of the MSCI ACWI Select Gold Miners Investable Market Index.
Newmont Mining Corp., Barrick Gold Corp., and Wheaton Precious Metals Corp. are the three largest assets in the fund’s portfolio. In addition to having a low-cost ratio of 0.39%, the iShares MSCI Global Gold Miners ETF also has a high dividend yield of 1.62%.
There are some encouraging indicators in RING’s most recent development, but the medium-term outlook is still mixed. Despite this, the long-term trend is neutral, but the short-term trend is positive, as the fund is becoming more popular with traders and investors.
RING has been trading in a range of $25.53 – $29.16 over the last month, and it is now trading towards the top of that level.
In the daily time frame, there is support at $28.39 provided by a horizontal line, and a support zone spanning $27.25 to $27.51 is established by a combination of various trend lines and key moving averages in different time frames.
On the other hand, while looking at the resistance, we see one major place around $31.73, which is a trend line in the weekly time frame.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.