The new Market Vector Gold Miners ETF is the first ETF to track the gold mining sector. It replicates the AMEX Gold Miners Index (GDM) which is composed of 43 individual precious metal stocks. The ETF’s creator, Van Eck Global, is well known in the gold community since they were also the first to introduce a gold mutual fund, way back in 1968.
One of the advantages of this ETF is that it is more skewed towards the smaller capitalization gold stocks (compared to say the XAU). and should therefore provide more beta. It is also a good way to play the coming gold stocks bounce, if you don’t want to bother with individual gold stocks.
ETF, GDX, gold, gold miners, precious metals
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