Wednesday, November 11, 2009

Brand New Gold ETF For Junior Miners

GDX has been the traditional ETF to buy a basket of miners. Now there is GDXJ, for investord who wish to buy a basket of junior miners.

GDXJ tracks the Market Vectors Junior Gold Miners Index, seeking to provide investors with exposure to a global universe of publicly traded small-and medium-cap companies that generate at least 50% of their revenue from gold and/or silver mining.

Companies included must hold real property that has the potential to produce at least 50% of the company's revenue from gold or silver mining when developed, or primarily onvest in gold or silver.

The top holdings in the fund are:

Coeur d Alene Mines Corp CDE US 6.63%
New Gold Inc NGD CN 5.60%
Silver Standard Resources Inc SSRI US 5.44%
Hecla Mining Co HL US 5.19%
Gammon Gold Inc GRS US 4.74%
Alamos Gold Inc AGI CN 4.26%
Semafo Inc SMF CN 3.78%
Silvercorp Metals Inc SVM CN 3.70%
European Goldfields Ltd EGU CN 3.38%
Golden Star Resources Ltd GSS US 3.34%

These are all well-known companies.

Many of the companies included in the underlying portfolio are still in the development stage and have yet to generate revenues. As such, GDXJ will be subject to more volatility than GDX.

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