GDXJ

aleks

aleks

Well-Known Member
Silver Stacker
US listed, 0.56% management fee

VanEck Vectors Junior Gold Miners ETF (GDXJ) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS Global Junior Gold Miners Index (MVGDXJTR), which is intended to track the overall performance of the gold mining industry, which may include micro- and small- capitalization companies.
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https://www.vaneck.com/etf/equity/gdxj/overview/

Fact sheet PDF
https://www.vaneck.com/library/vaneck-vectors-etfs/gdxj-fact-sheet-pdf/

ASX stocks in holding at the time of this post
Ticker % of net assets in holding
Independence Group Nl IGO 3.29%
Regis Resources Ltd RRL 3.18%
St Barbara Ltd SBM 2.55%
Resolute Mining Ltd RSG 1.56%
Saracen Mineral Holdings Ltd SAR 1.38%
Beadell Resources Ltd BDR 0.84%
 
My view, GDXJ and/or GDX means you get professional selection, wide diversity, and would probably cost less in transaction fees compared to building a portfolio of gold stocks. Also, lets say you only want to invest $10k, you cant diversify with that amount. Less administration hassle than buying a bunch of stocks yourself too.

But I notice one of the world's best gold stocks is not present in GDXJ - that, need I say, is NST. Northern Star was deleted due to getting too big in market cap size. I believe EVN (Evolution) was deleted around same time. Both those are in GDX however.

While you diversify using the etfs, you also dilute the quality with some duds, which was a point made by Adam Hamilton in a recent essay. You might though, similarly make some poor picks yourself.
If you favour Australian miners, due to costs in $A, or regulatory environment, you only get a portion of the etfs made up of the Oz miners.

An etf is too 'abstract' for me.
 
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