Tariffs, geopolitical volatility, and overall economic uncertainty have taken over this year. So far in 2025, the top-performing ETFs are all international ETFs, with a handful of gold and gold mining ETFs. Gold, which has a low correlation to stocks, has been serving well as a hedge against volatility. While gold miners move alongside gold as a commodity, some added elements can make the space attractive as an alternative to gold.
Gold mining is a leveraged alternative to gold
Gold mining companies are leveraged to gold prices, as revenues for these commodities are dependent on finding and selling gold. When gold prices move higher, gold miner prices typically move even higher. And when gold prices fall, gold miner prices fall even more. At a time like now, when gold is serving as a hedge against domestic stock market volatility, gold miners perform even better. For example, the SPDR Gold Trust (GLD ) is currently up 11.1% YTD, while the VanEck Gold Miners ETF (GDX ) is currently up 18.8% YTD.
Gold mining stocks outperforming the broader market YTD
Overall gold mining ETFs have performed well YTD, especially when compared to domestic equity markets. The SPDR S&P 500 ETF Trust (SPY ) is down 1.6%, but gold mining ETFs are up 18%-19% (junior gold mining ETFs are slightly lower, but still have double digit returns). Most of the large gold mining stocks have all been higher YTD — most in the 20%-30% range. Outperformance has been due to increased gold production and prices, and some industrywide factors like increased cash flows and stronger operational performance. The majority of these companies are Canadian companies, followed by U.S. and Australia.
Gold mining ETFs
Investors have a wide range of gold mining ETFs to choose from, including several leveraged ETFs. These are a few highlights.
- The VanEck Gold Miners ETF (GDX ) is the oldest and largest fund of the group. Launched in May 2006, the ETF has over $13 billion in assets. Holdings have market capitalizations of over $750 million and a single stock has a cap of 20%. Companies whose revenues are significantly exposed to silver mining are capped at 20% total.
- VanEck also offers the VanEck Junior Gold Miners ETF (GDXJ ), which holds companies that obtain at least 50% of their revenue from gold and/or silver mining. These stocks must have a market cap of over $150 million to be included. Junior gold miners potentially have greater upside due to being smaller, early-stage companies compared to standard gold mining firms.
- The iShares MSCI Global gold Miners ETF (RING ) shares similarities with GDX and has just over $1 billion in assets. Its index excludes companies that hedge gold (or hedging is less than 10% of their business). Its top three holdings are 44% of the portfolio versus 31% for GDX, so it is slightly more concentrated. The ETF is cheaper than GDX by around 12 bps.
- The Sprott Gold Miners ETF (SGDM ) shares top holdings similar to GDX and RING, but takes a more domestic approach. This ETF focuses on stocks located in Canada and the U.S. that earn over 50% of their revenue from gold. The Index uses a rules-based methodology that focuses on larger-sized gold companies with the highest revenue growth, free cash flow yield, and the lowest long-term debt to equity. Sprott, which is known for its precious metals and critical materials strategies, also offers the Sprott Junior Gold Miners ETF (SGDJ). Holdings must have between $200 million and $2 billion in market cap to be included.
The Themes Gold Miners ETF (AUMI ) tracks an index of the 30 largest gold mining companies by market cap. Launched in December 2023, this fund is the newest of the group, with only $3.7 billion in assets. The ETF is also the cheapest of the group, at 35 bps. Another key difference is its rules including its revenue requirement (large gold miners like Barrick and Newmont are excluded from this ETF due to these rules). Holdings must have at least 90% of their revenues from gold.
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