36.04 -0.01 (-0.03%)
Pre-Market: 7:58AM EDT
|Bid||36.01 x 800|
|Ask||36.04 x 1200|
|Day's Range||35.62 - 36.10|
|52 Week Range||25.91 - 36.10|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.40|
|Expense Ratio (net)||0.54%|
The VanEck Vectors Gold Miners ETF (GDXJ) and VanEck Gold Miners ETF (GDX) , two of the dominant names among gold miners exchange traded funds, are up an average of 12.7% this month, but some market observers believe more upside could be in the cards for these funds if US/China trade talks progress. Gold has also found greater support from safe-haven demand and a more dovish outlook from major global central banks, notably the Federal Reserve’s shift toward potential interest rate cuts to combat slowing growth. “Metal prices and mining equities have been at the mercy of trade headlines all year, and business fundamentals have a taken a back seat,” reports Mining.com.
Gold miner stocks and sector-related exchange traded funds led the charge on Tuesday as gold strengthened on growing global trade tensions and concerns over economic growth. Among the best-performing non-leveraged ETFs of Tuesday, the VanEck Vectors Gold Miners ETF (GDXJ) rose 4.1% and VanEck Gold Miners ETF (GDX) gained 3.0%. Meanwhile, Comex gold futures were 1.4% higher to $1,408.4 per ounce on Tuesday.
Gold finally has its shine back. Yes, some folks may have abandoned gold in favor of digital gold -- bitcoin has surged several hundred percent recently. But the world's favorite precious metal is sparkling again too. Recently, the price of gold topped $1,400/oz, marking its highest level in more than five years. Gold's move has come with surprising speed as well, it's up nearly 10% over the past month.Not surprisingly, with gold surging, investors are starting to come back to a long dormant group of companies: mining stocks. Now, to be fair, most of these gold stocks are rightly ignored. As the famous adage goes, a gold mine is a hole in the ground with a liar at the top. That's true of far too many small prospecting companies.Incredibly, over the past 10 years, even with the price of gold up overall, mining stocks have gotten wrecked. The main sector ETF, VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) has lost nearly half its value over the past decade. Meanwhile, the more speculative smaller gold companies fund, VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) has lost a catastrophic 67% of its value. Again, that's during a time when the price of gold went up on net, and stocks in general soared.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 F-Rated Stocks to Sell for Summer That means that it is most important to stick to quality operations when picking your gold stocks. Unlike many sectors, mediocrity generally isn't enough to drive positive performance in gold, even if the overall conditions are relatively decent. With all that in mind, what should you buy and what should avoid as gold stocks take off again? Barrick Gold (GOLD)Source: (C)iStock.com/TomasSereda One good rule for buying into an unloved sector is to buy one of the industry leaders, as long as it has a decent balance sheet. Newmont (NYSE:NEM) has been in a terrible funk since it made its questionable purchase of Goldcorp. Newmont stock has barely moved since the gold stock rally got going. That leaves Barrick Gold (NYSE:GOLD) as the next best option. With its $30 billion market cap and operations spanning many countries, Barrick is one of the world's leading diversified miners.In fact, by at least one metric, Barrick is the world's powerhouse gold mining firm. It has five of the world's ten Tier 1 mines -- defined as a mine that produces 500,000 ounces or more per year, has 10+ years of reserves left, and operates at or below the median global cost of mining. This huge number of long-life world class assets ensures the Barrick is here to stay. Regardless of where the price of gold goes, Barrick will be mining lots of gold -- profitably -- for many years to come.The company has a lot to offer investors in 2019 specifically, as well. In its first quarter, for example, Barrick showed nice leverage to the price of gold despite it having lower-cost mining operations. For the quarter, Barrick managed to boost cash from operations 27% while doubling earnings as gold production rose 8%. That's some solid results. At $16/share, GOLD stock is still well short of the $22 level it hit in 2016 on the last wave of gold stocks momentum. If gold can keep its momentum, GOLD stock should be able to revisit $22 in a hurry. Gold Stocks To Buy: Franco-Nevada (FNV)Source: Shutterstock Buying industry leaders is a good way to catch a sector as it comes out of a long slumber. However, thinking back to how poorly mining stocks in general have performed, there's another important thing to consider. That's the different between gold streaming stocks and gold mining stocks. The gold streamers act as a sort of specialty finance shop, lending money to the mining companies, and getting a cut of ensuing gold production at a (usually) fixed price.The gold streamers take on significant risks including gold price variation, delays in production, and bankruptcy of the counterparty mining firm. In return, however, the gold streamers tend to earn fat returns. Over the past decade, while mining stocks as a group lost half their value or more, streamers prospered. For example, Franco-Nevada (NYSE:FNV) quadrupled, and rival streamer Royal Gold (NASDAQ:RGLD) soared 150% over the past 10 year period while mining stocks plummeted. * 7 Stocks to Buy for the Same Price as Beyond Meat Franco-Nevada specifically, over the years, has built a huge pool of streaming assets across gold and other things. Last year, it sold nearly 350,000 ounces of gold, along with nearly 100,000 gold equivalent ounces of other metals including silver and platinum. For the year, it produced $139 million in net income off of $653 million in revenue, generating a robust profit margin. It also pays a modest dividend to shareholders -- a rarity in the gold stocks industry -- to reward its owners. Gold Stocks To Buy: Sandstorm Gold (SAND)Source: Shutterstock While Barrick Gold and Franco-Nevada will offer big upside if and when gold stocks rally more, the list wouldn't be complete without at least one potential home run pick. Enter Sandstorm Gold (NYSEAMERICAN:SAND). While the ticker may be SAND, Sandstorm is much more precious than that.The company is attractive because it is a small streaming company with several big deals in the pipeline. At the moment, it has streams on 22 operating assets, which, at a gold price of just $1,300/oz throw off more than $60 million a year in cash flow. By 2022, as new contracted assets come into play, Sandstorm's cash flow is projected to double to around $130 million per year -- again using that conservative $1,300/oz gold price number.Now, consider that Sandstorm's market cap is just $1 billion. That's something like just 7x cash flow once its new mine streams come online. Now factor it significantly higher gold prices and things get even more exciting. SAND stock is already up 50% since its November low. It could run a lot more than that if and when the gold stocks rally kicks it into next gear.At the time of this writing, Ian Bezek owned SAND and FNV stock. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 F-Rated Stocks to Sell for Summer * 7 Stocks to Buy for the Same Price as Beyond Meat * 7 Penny Marijuana Stocks That Are NOT Cheap Stocks Compare Brokers The post 3 Gold Mining Stocks Help You Dig Up Profits appeared first on InvestorPlace.
In the world of physically backed gold ETFs, the SPDR Gold Shares (GLD) is the world's largest. As is often the case when gold declines, shares of gold miners overshoot the commodity's decline. The VanEck Vectors Gold Miners ETF (GDX), the largest gold miners ETF, is down 20.9% this year.
The VanEck Vectors Gold Miners ETF (GDXJ) , one of the largest gold miners exchange traded funds, is up more than 8% month-to-date, but some market observers believe there is plenty of value left in the resurgent gold miners group. The VanEck Gold Miners ETF (GDX) , the largest gold miners ETF, is up more than 12% this month. GDX is comprised of global gold miners, with a notable tilt toward Canadian and U.S. mining companies.
There are 11 sectors represented in the S&P 500 with weights ranging from 2.81% at the bottom to 21.45% at the top. Guess which group resides at the bottom? Materials.That is not the only point underscoring the materials sector's diminutive status. The Materials Select Sector SPDR ETF (NYSEARCA:XLB), the largest materials exchange-traded fund, holds just 28 stocks and the Dow Jones Industrial Average is home to just one materials stock -- Dow Inc. (NYSE:DOW).XLB "seeks to provide precise exposure to companies in the chemical, construction material, containers and packaging, metals and mining, and paper and forest products industries," according to State Street.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSize aside, there are plenty of opportunities to be had with materials ETFs and investors may want to consider getting in while the getting is good because the sector is on fire in the first half of June."In fact, the materials group, the sector that tends to be the most sensitive to global economic growth expectations, is on track for its best monthly gain since October of 2015, when it soared 13.45%, according to Dow Jones Market Data," reports MarketWatch. * 7 Top-Rated Biotech Stocks to Invest In Today For investors looking to embrace a small sector with big potential, here are some materials ETFs to consider. VanEck Vectors Junior Gold Miners ETF (GDXJ)Source: Shutterstock Expense Ratio: 0.53%, or $53 annually per $10,000 investedThe VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) is one of the largest gold miners funds, meaning it is also a materials ETF and a volatile one at that. GDXJ has a three-year standard deviation of 30.50%, roughly triple the comparable metric on the S&P 500. Indeed, this materials ETF is not for the faint of heart and it has a tendency to overshoot gold's price action in either direction.Fortunately, the current climate sets up well for gold, as highlighted by GDXJ's month-to-date gain of nearly 9%."If you look at the GDXJ [VanEck Vectors Junior Gold Miners ETF] and go back to 2010, the adjusted return in Canadian dollars is down about 85%. Then if you look deeper … at the really junior juniors, which aren't even in these ETFs, it's even more so. We have an industry where you've lost 80% to 90% of the value -- plus," said Jonathan Goodman, executive chairman of Dundee Corp., in an interview with Kitco News.Another catalyst could boost this materials ETF in the second half of the 2019: the Federal Reserve. If the Fed lowers interest rates, gold almost certainly rallies in response, likely sending GDXJ and miners ETFs higher along the way. Invesco MSCI Global Timber ETF (CUT)Source: Shutterstock Expense Ratio: 0.55%Among materials ETFs, timber funds -- all two of them -- often go overlooked. The Invesco MSCI Global Timber ETF (NYSEARCA:CUT), which tracks the MSCI ACWI IMI Timber Select Capped Index, gives investors nuanced materials exposure with a decent yield.CUT's underlying index "measures the performance of securities engaged in the ownership and management of forests, timberlands and production of products using timber as raw materials," according to Invesco.CUT holds 77 stocks, giving it a significantly larger roster than many traditional materials ETFs and some of that size is attributable to the fund being a global materials ETF. Eleven countries are represented in this materials ETF with the U.S. commanding a weight of 42%. Of the other 10 countries found in this materials ETF, eight are developed markets. * The 10 Best Index Funds to Buy and Hold Nearly 56% of CUT's components are classified as value stocks and the materials ETF reflects that value proposition with a price-to-earnings ratio of just 12.82x, a healthy discount relative to broader domestic equity benchmarks. SPDR S&P Mining & Materials ETF (XME)Source: Shutterstock Expense Ratio: 0.35%The SPDR S&P Mining & Materials ETF (NYSEARCA:XME) is an equal-weight materials ETF with diverse exposure to miners of several industrial and precious metals.XME's underlying index provides exposure to "the following sub-industries: Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel," according to State Street.In other words, XME is exactly the type of fund that can be stung by tariffs. That is exactly what has happened to this materials ETF. XME is down 11.41% in the second quarter and resides more than 31% below its 52-week high, putting the fund deeply into a bear market.XME is also volatile as far as materials ETFs are concerned. Over the past three years, XME's annualized volatility is 26.20% compared to 15.60% for the aforementioned XLB. Problem is, XME often does not justify that increased volatility because it can trail traditional materials ETFs by wide margins.As of this writing, Todd Shriber did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post 3 Materials ETFs to Help Build Your Portfolio appeared first on InvestorPlace.
Another day, another tweet. President Trump's latest salvo, aimed at Mexico this time, is sending the stock market down but boosting gold prices.
Gold miners and sector-related ETFs were leading the charge Monday as the sudden risk-off turn helped strengthen gold prices and the precious metal producers’ outlook. Among the best performing non-leveraged ...
Here is a look at the 25 best and 25 worst ETFs from the past week. Traders can use this list to find prospective candidates that have deviated too far from their longer-term trends, thereby serving as potential starting points for those looking to take on either short or long positions. Likewise, traders can also use this list to spot potential trend reversal opportunities that may offer a generous risk/reward. As always, investors of all experience levels are advised to use stop-loss orders and practice disciplined profit-taking techniques. To get access to all ETFdb.com premium content, sign up for a free 14-day trial to ETFdb.com Pro.
Gold-related ETFs have been gaining ground as risk-off sentiment reignited in response to another round of trade concerns between the U.S. and China. Among the better performing non-leveraged ETFs of Tuesday, the VanEck Vectors Gold Miners ETF (GDXJ) and VanEck Gold Miners ETF (GDX) gained 2.0%. Meanwhile, Comex gold futures were 0.1% higher to $1285.5 per ounce.
Exchange-traded funds (ETFs) are often aimed at conservative investors with long-term time horizons. Many of the largest ETFs on the market today are designed to provide cost-effective exposure to basic asset classes, such as domestic stocks, international equities and high-grade government bonds.Another selling point of a slew of ETFs to buy is that these funds feature broad lineups of stocks, a strategy that reduces concentration risk while eliminating the need for stock picking. Bottom line: may of the top ETFs to buy are inexpensive and easy to understand, selling points that were the foundation of the ETF industry two decades ago and traits that are likely to continue driving the industry's exponential growth.However, the ETF business is evolving and that evolution has led to the introductions of products aimed at more risk-tolerant traders and investors. Some of the better ETFs to buy for more adventurous investors include thematic funds while others are designed to be more tactical in nature.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Strong Buy Stocks That Tick All the Boxes Put it this way: if you're an investor with an adventurous spirit, there are plenty of ETFs to buy, but in many cases, that does not mean an investor should take on high levels of risk for extended periods of time. For investors looking to juice their returns or simply take on some added risk, here are some ETFs to buy. Best ETFs to Buy for Gamblers: ProShares UltraShort QQQ (QID)Expense Ratio: 0.95% per year, or $95 on a $10,000 investment.The ProShares UltraShort QQQ (NYSEARCA:QID) is designed to deliver double the daily inverse returns of the widely followed Nasdaq-100 Index, so if that index declines by 1% on a particular day, QID should rise by 2%.In other words, QID is a bad ETF to buy when the Nasdaq-100 is going up, something that tech-heavy benchmark has made a habit of doing over the course of the past decade. The current market environment clearly favors growth and technology stocks, two of the fortes of the Nasdaq-100, making QID an ETF to buy for contrarians or those looking to hedge long positions in Nasdaq-100 funds.In either case, investors should note QID and other leveraged ETFs are intended for short-term traders, not to be held for long holding periods, because the longer a leveraged ETF like QID is held, the more the chances increase that the fund will deviate from its stated objective.Interestingly, market participants have added nearly $181 million to QID this year. Global X MSCI Greece ETF (GREK)Expense Ratio: 0.59%The Global X MSCI Greece ETF (NYSEARCA:GREK) is the only U.S.-listed ETF dedicated to Greek equities. After years of being saddled by austerity measures and borrowing billions from the International Monetary Fund (IMF) and the European Union (EU), Greece is finally on the right fiscal path.GREK is up nearly 22% year-to-date, indicating investors view this as an ETF to buy."In Q1, the markets were up 15.2% and forecasts put 2019 GDP growth at annualized 2.4%, versus Europe at just 1.3%," said Global X in a recent research note. "Greece's improving growth prospects could portend the start of a virtuous cycle for Greece, making it a standout against the weak backdrop of a sluggish Europe." * 7 Energy Stocks to Buy to Light Up Your Portfolio What makes GREK a risky ETF to buy is, among other factors, a standard deviation of 24%, which is well above the comparable metric on emerging markets and Eurozone benchmarks. Those are relevant comparisons because Greece is a Eurozone member and classified as an emerging market. VanEck Vectors Junior Gold Miners ETF (GDXJ)Expense Ratio: 0.53%Among risky industry and sector ETFs to buy, mining funds are certainly part of that conversation and precious metals mining funds, such as the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) are among the best ETFs to buy for risk-tolerant investors.GDXJ is a fine ETF to buy for an active, risk-aware trader looking to make a bet on rising gold prices. One of the risks, however, with gold mining ETFs is that the funds are not always responsive to higher bullion prices. Amplifying the risk profile is that when gold prices decline, shares of miners often overshoot spot gold's declines.Add all that into the wrapper of a small-cap fund and GDXJ is a volatile ETF to buy. The fund's standard deviation of more than 31% is well above that of basic gold funds and traditional small-cap ETFs. iPath Global Carbon ETN (GRN)Expense Ratio: 0.75%The iPath Global Carbon ETN (NYSEARCA:GRN) definitely is not a good ETF for all investors. This niche, lightly traded exchange-traded note (ETN) tracks the Barclays Global Carbon II TR USD Index.That index "is designed to measure the performance of the most liquid carbon-related credit plans. Each carbon-related credit plan included in the index is represented by the most liquid instrument available in the marketplace. The index expects to incorporate new carbon-related credit plans as they develop around the world," according to the issuer. * 10 Cheap Stocks to Buy Now While GRN has low correlations to traditional asset classes, the fund is not for conservative investors due to its history of high volatility. Not to mention, most investors can live without carbon credits in their portfolios. SPDR S&P Oil & Gas Exploration & Production ETF (XOP)Expense Ratio: 0.35%For adventurous investors looking for energy sector exposure, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEARCA:XOP) is one of the best ETFs to buy. XOP can be great when oil prices are trending higher because exploration and production stocks are typically more correlated to crude prices than integrated oil companies.XOP does come with the disclaimer that, as is the case throughout financial markets, there is no such thing as a free lunch. Compared to traditional energy funds that are heavily allocated to stocks like Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), XOP is significantly more volatile.The added volatility gets compounded when oil prices decline. When that happens, XOP and rival exploration and production ETFs often produce losses that far exceed those of basic energy ETFs. Direxion Daily S&P Biotech Bull 3X Shares (LABU)Expense Ratio: 1.12%Like the aforementioned QID, the Direxion Daily S&P Biotech Bull 3X Shares (NYSEARCA:LABU). In the case of LABU, this leveraged funds tries to deliver triple the daily returns of the S&P Biotechnology Select Industry Index, so if that index rises by 1% on a particular day, LABU should jump by 3%.LABU is one of the best ETFs for risk tolerant because it amplifies the combination of biotechnology and volatility. Data confirm as much. Over the past month, LABU is one of Direxion's most volatile bullish leveraged ETFs, a status LABU frequently attains. * The 10 Best Stocks to Buy for May LABU is also one of the best ETFs for aggressive traders to deploy during biotechnology earnings season and around news events such as drug approvals and industry consolidation. What that means is traders should treat LABU like the short-term instrument it is. VanEck Vectors ChinaAMC SME-ChiNext ETF (CNXT)Expense Ratio: 0.65%Chinese small-caps probably are not the asset class for your retirement portfolio, but the VanEck Vectors ChinaAMC SME-ChiNext ETF (NYSEARCA:CNXT) is one of the best ETFs for investors seeking tactical exposure to the world's second-largest economy. CNXT fills some useful voids in international portfolios because many traditional China funds focus on large caps whereas this fund focuses on mid- and small-cap stocks.CNXT's underlying index "tracks the performance of the 100 largest and most liquid China A-share stocks listed and trading on the Small and Medium Enterprise ("SME") Board and the ChiNext Board of the Shenzhen Stock Exchange," according to VanEck.The weighted average market value of CNXT's 100 holdings is $12.8 billion, putting the fund just inside large-cap territory, but that number is still well below the average market caps found on holdings in traditional China ETFs.CNXT can be a bumpy ride. The fund is up 20% year-to-date, but that's after shedding 18% over the past month.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Strong Buy Stocks That Tick All the Boxes * 7 Stocks to Buy From the T. Rowe Price Health Sciences Fund * 5 Tech ETFs to Plug In to Big Profits Compare Brokers The post 7 ETFs for Investors With a Gambler's Spirit appeared first on InvestorPlace.
Sometimes the U.S. stock market sends a clear, unambiguous message. The message the stock market sent during Federal Reserve Chairman Jerome Powell’s press conference Wednesday says that the market is vulnerable. • The chart shows that the stock market rose immediately after the Fed decision was announced.
Gold: Analysts Are Bullish despite Weak Performance in 2019(Continued from Prior Part)BMO Capital Markets BMO Capital Markets raised its gold price forecast for 2019 0.8% to $1,293 per ounce in March. The firm is expecting gold prices to average
Gold: Analysts Are Bullish despite Weak Performance in 2019(Continued from Prior Part)Credit Suisse Credit Suisse (CS) is positive about gold prices (IAU) in 2019. The bank expects gold prices to average $1,280 per ounce in 2019 and $1,300 in 2020.
Checking In on Gold Miners Ahead of Their Q1 2019 Results(Continued from Prior Part)Higher multiplesThe chart below compares gold miners’ forward EV[1.enterprise value-to-EBITDA multiples and forward EBITDA margins. Agnico Eagle Mines’ (AEM)
Checking In on Gold Miners Ahead of Their Q1 2019 Results(Continued from Prior Part)Analysts’ estimates for FCF Investors are usually interested in gold mining companies’ (GDX) (GDXJ) ability to generate FCF (free cash flow), as it helps them
Gold miners and sector-related ETFs strengthened Friday, with gold prices rising to a near two-week high, as the U.S. dollar pulled back on the weak inflation data. Among the best performing non-leveraged ...
AEM Beats Q1 Earnings and Revenue Estimates, Wall Street BullishAgnico Eagle Mines’ Q1 2019 resultsAgnico Eagle Mines (AEM) released its Q1 2019 results yesterday and held the accompanying conference call today. Its earnings per share (EPS) were
Checking In on Gold Miners Ahead of Their Q1 2019 Results(Continued from Prior Part)Ratings and rationaleIn the senior and intermediate gold miner space (GDX) (GDXJ), excluding royalty and streaming companies, analysts are most bullish on Agnico
Why Is Deutsche Bank Bullish on Gold?(Continued from Prior Part)Deutsche Bank upgraded Barrick Gold Barron’s reported that Deutsche Bank (DB) analyst Chris Terry has increased gold’s (GLD) (IAU) target price to $1,350 per ounce for 2019. Due to
How Gold and Gold Miners Performed in Q1(Continued from Prior Part)Agnico Eagle Mines and IAMGOLD Among senior and intermediate gold miners (GDX) (GDXJ), analysts are most bullish on Agnico Eagle Mines (AEM). It has 83% “buy” and 17% “hold”
How Gold and Gold Miners Performed in Q1(Continued from Prior Part)Eldorado Gold’s significant outperformance Eldorado Gold (EGO) significantly outperformed its peers (JNUG) (GDXJ) as well as gold (GLD) in the first quarter with a gain of 60.8%.
How Gold and Gold Miners Performed in Q1(Continued from Prior Part)Barrick Gold’s underperformance Barrick Gold (GOLD) underperformed its senior and intermediate peers (NUGT) (GDXJ) as well as the broader benchmark index (GDX) during the first