Market Vectors Junior Gold Miners (GDXJ) is bouncing after falling to an all-time low and experiencing net outflows of more than $800 million last week.
GDXJ was up nearly 3% on Monday after adjusting for the ETF’s 1-for4 reverse split. The fund rallied over 8% on Friday on heavy trading volume. [Market Vectors to Reverse Split 7 ETFs]
However, investors pulled a net $835.6 million from GDXJ last week, the third-highest outflows among all ETFs, according to IndexUniverse data.
Sentiment on gold miner stocks has dropped to new lows after several head-fake rallies the past few years. The sector has been crushed by falling gold prices and questions over corporate leadership.
Evy Hambro, which manages the $10 billion World Mining Fund at BlackRock, told Bloomberg that some gold miners could go bankrupt on slumping metal prices and rising costs.
GDXJ was down 45.3% for the three months ended June 28, according to Morningstar. It’s large-cap peer, Market Vectors Gold Miners (GDXJ), was off 35.3% over the same period.
Market Vectors Junior Gold Miners
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