SGDM tracks the Solactive Gold Miners Custom Factors Index and “emphasizes gold companies with the highest revenue growth and free cash flow yield, and the lowest long-term debt to equity ratio,” according to the issuer. Historically, gold is one of the premier inflation-fighting assets. Inflation fears are further reflected by a sharp rise in benchmark Treasury yields, which may be partially attributed to expectations for greater inflation. “Global manufacturing activity is expanding at the fastest rate in more than a decade, creating robust demand for industrial metals this year,” according to State Street research. “Although Chinese demand may grow slower than last year, given the government’s lower-than-expected growth and fiscal deficit targets for this year, strong demand driven by manufacturing recovery outside of China and the potential multi-year infrastructure plan in the US may support the industrial metal market further in the coming years.”