VanEck’s Gold Miners ETF breaks the EUR500m barrier
The VanEck Vectors Gold Miners UCITS ETF has now reached over EUR500 million in fund volume. The ETF invests in stocks of companies operating in the gold and silver mining industry.
The ETF has seen strong inflows, especially in recent months.
"The turbulent times on stock markets and the overall uncertain global economic outlook have noticeably increased the importance of gold and precious metals in general and their demand for them again," says Martijn Rozemuller, Head of Europe at VanEck. "Of course, the most visible demonstration of this is the continuing rise in the price of gold."
Companies in the gold mining industry are also profiting from the rising gold price, as the rising demand for the precious metal enables them to achieve higher sales and profits. "These companies were also not affected by the restrictions of the current coronavirus crisis as much as originally feared. In the meantime, they are likely to have ramped up their production again to a large extent," says Joe Foster, portfolio manager and gold strategist at VanEck. As the political and economic uncertainties are likely to continue in the near future, especially due to the coronavirus crisis, from VanEck's point of view everything indicates that the outlook for gold mining companies will remain positive.
The VanEck Vectors Gold Miners UCITS ETF (GDX) is an exchange traded fund that invests in an equity portfolio and aims to achieve investment returns that are as close as possible to the performance of the NYSE Arca Gold Miners Index (GDMNTR). The global index tracks the performance of the largest listed companies in the world dedicated to gold and silver mining. The ETF is fully physically replicating, excludes securities lending and currently has a total expense ratio of 0.53 per cent per year.