Through nearly four months, it’s clear gold is one this year’s star assets. Just look at the largest ETF backed by physical holdings of the yellow metal. That fund is up 27.23% year to date, buoyed by bullion notching record highs on a regular basis.
However, investors could have unearthed even better approaches to gold in the world of ETFs. Enter the WisdomTree Efficient Gold Plus Gold Miners Strategy Fund (GDMN ). The actively managed fund is up a jaw-dropping 71.83% since the start of the year.
What makes the GDMN 2025 rally all the more impressive is that its percentage gain is only slightly below that of largest bullion-backed and gold miners ETFs on a combined basis. That’s relevant because GDMN holds shares of mining equities along with gold futures contracts.
GDMN Right for the Times
Including GDMN, gold ETFs are soaring this year. That’s due in large part to a macroeconomic backdrop forcing investors to consider risk-off assets. That backdrop owes to, in large part, aggressive, turbulent U.S. trade policy.
“These trends already held the potential to create a situation where multiple pockets of global capital attempt to acquire gold, as a ‘safe’ monetary metal, simultaneously,” noted James Luke of Schroders. “As we have often repeated, the gold market is simply not large enough to absorb such a simultaneous global bid without much higher prices. President Trump is accelerating and super-charging the potential for that simultaneous global bid.”
While it may be premature or inaccurate to proclaim the dollar is on its deathbed – something that’s been mentioned for decades – it’s clear President Trump’s trade policies are weakening the greenback. That’s a boon for gold, because like other commodities, the yellow metal is denominated in the U.S. currency. Clearly, weak dollar benefits are reflected in GDMN’s year-to-date price action.
And as gold prices rise, so can the earnings and cash flow of miners, including those held by GDMN. As Schroders’ Luke points out, current spot gold prices imply miners could notch the best earnings and cash flow growth of any sector in the broader equity market. Interestingly, some market participants aren’t getting the message as they’ve been net sellers of gold equities. Oddly enough, that could be a bullish contrarian indicator for GDMN holdings.
“Despite this, investors have on aggregate responded by selling passive exposure to the gold equity sector at the fastest rate we can see on record. In 1Q 2025 alone US$2.4 billion has been liquidated from passive products. To us, this is astonishing, and very bullish from a sentiment perspective,” concluded Luke.
Bullish Sentiment Perspective
And as gold prices rise, so can the earnings and cash flow of miners, including those held by GDMN. As Schroders’ Luke points out, current spot gold prices imply miners could notch the best earnings and cash flow growth of any sector in the broader equity market. Interestingly, some market participants aren’t getting the message as they’ve been net sellers of gold equities. Oddly enough, that could be a bullish contrarian indicator for GDMN holdings.
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