Best Gold Miner ETFs for Q2 2022

GOAU, SGDM, and RING are the best gold miner ETFs for Q2 2022

Gold is commonly utilized by investors as a hedge against market risks such as inflation and geopolitical turmoil. Investors looking for exposure to this safe-haven asset have several options, including investing in gold bullion directly or buying gold futures contracts.

Another way to gain indirect exposure to gold is by investing in exchange-traded funds (ETFs) that own gold mining companies. Many investors see ETFs as a liquid and low-cost option for gaining exposure to this part of the gold industry.

Key Takeaways

  • The gold mining industry has significantly underperformed the broader market over the past year.
  • The gold miner exchange-traded funds (ETFs) with the best one-year trailing total returns are GOAU, SGDM, and RING.
  • The top holding of the first fund is Royal Gold Inc., and the top holding of the second two funds is Newmont Corp.

Six gold miner ETFs trade in the United States, excluding inverse and leveraged ETFs, as well as funds with less than $50 million in assets under management (AUM). These are ETFs that track gold mining stocks, rather than ETFs tracking gold as a commodity. The gold mining industry, as measured by the NYSE Arca Gold Miners Index, has significantly underperformed the broader market. The index has declined by 8.2% over the past 12 months compared with the S&P 500’s total return of 17.1%, as of Feb. 8, 2022. The best-performing gold miner ETF, based on performance over the past year, is the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU). We examine the three best gold miner ETFs below. All numbers below are as of Feb. 8, 2022.

U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU)

  • Performance Over One-Year: -6.0%
  • Expense Ratio: 0.60%
  • Annual Dividend Yield: 6.20%
  • Three-Month Average Daily Volume: 31,867
  • Assets Under Management: $94.2 million
  • Inception Date: June 27, 2017
  • Issuer: U.S. Global Investors

GOAU aims to track the U.S. Global GO GOLD and Precious Metal Miners Index. The benchmark is designed to gauge the performance of companies producing precious metals and minerals, through either mining and production or passive ownership of royalties or production streams. The ETF provides exposure to a selection of companies operating within the gold mining industry. The multi-cap fund follows a blended strategy of investing in growth and value stocks. Its top three holdings are Royal Gold Inc. (RGLD), a precious metals streaming and royalty company; Franco-Nevada Corp. (FNV:TSE), a gold-focused royalty and streaming company; and Wheaton Precious Metals Corp. (WPM:TSE), a precious metals streaming company.

Sprott Gold Miners ETF (SGDM)

  • Performance Over One-Year: -6.6%
  • Expense Ratio: 0.50%
  • Annual Dividend Yield: 0.31%
  • Three-Month Average Daily Volume: 34,653
  • Assets Under Management: $232.4 million
  • Inception Date: July 15, 2014
  • Issuer: Sprott

SGDM tracks the Solactive Gold Miners Custom Factors Index, which is comprised of larger-sized gold companies whose stocks are listed on Canadian and major U.S. exchanges. The index focuses primarily on companies with the highest revenue growth and free cash flow yield as well as the lowest long-term debt-to-equity ratio. 72.5% of SGDM holdings are based in Canada, with the bulk of the remainder based in the U.S. A small portion of the portfolio includes companies based in South Africa, the U.K., and Australia. The top holdings of SGDM include Newmont Corp. (NEM), a gold mining company focused on the production and exploration of gold, copper, silver, zinc, and lead; Franco-Nevada; and Barrick Gold Corp. (ABX:TSE), a Canada-based gold mining company focused mainly on the production of gold and copper.

iShares MSCI Global Gold Miners ETF (RING)

  • Performance Over One-Year: -8.1%
  • Expense Ratio: 0.39%
  • Annual Dividend Yield: 1.58%
  • Three-Month Average Daily Volume: 128,220
  • Assets Under Management: $501.8 million
  • Inception Date: Jan. 31, 2012
  • Issuer: BlackRock Financial Management

RING tracks the MSCI ACWI Select Gold Miners Investable Market Index, an index of global companies primarily engaged in gold mining. Just over half of companies represented in the portfolio are based in Canada, with the United States and South Africa receiving the next largest portions. RING focuses specifically on large-cap companies and adopts a blended strategy. Its top holdings include Newmont, Barrick Gold, and Wheaton Precious Metals.

The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

Article Sources
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  4. ETF Database. “GOAU: US Global GO GOLD and Precious Metal Miners ETF.” Accessed Feb. 9, 2022.

  5. Sprott. "SGDM Sprott Gold Miners ETF." Accessed Feb. 9, 2022.

  6. ETF Database. "SGDM: Sprott Gold Miners ETF." Accessed Feb. 9, 2022.

  7. iShares. “RING: iShares MSCI Global Gold Miners ETF.” Accessed Feb. 9, 2022.

  8. ETF Database. “RING: iShares MSCI Global Gold Miners ETF.” Accessed Dec. 1, 2021.

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