From 24/7 Wall St. · Ryne Mauck · · 1m 10s
Gold Funds Show Different Risks
GLD, GDX, and GDXJ funds react differently to gold's pullback, with miners taking bigger losses.
In brief
GLD, GDX, and GDXJ funds react differently to gold's pullback, with miners taking bigger losses. GLD fell 7.12%, GDX dropped 13.18%, and GDXJ slid 14.52% over the past month as gold pulled back. Originally reported by 24/7 Wall St..
Gold Funds Show Different Risks
GLD, GDX, and GDXJ are three ways to bet on gold, but the same market move produces wildly different returns.
Past Month Performance
GLD fell 7.12%, GDX dropped 13.18%, and GDXJ slid 14.52% over the past month as gold pulled back.
What Each Fund Holds
GLD holds physical gold bullion. GDX and GDXJ hold shares of gold mining companies, with GDXJ focused on junior miners.
Why Miners Swing Harder
Operating leverage causes miners to swing harder than gold itself, with the same market move producing bigger losses.
Year-to-Date Performance
GDX is the only fund up 0.48% year-to-date, while GLD is down 4.67% and GDXJ is down 3.06%.
Long-Term Performance
Over ten years, GDX returned 312.97% while GDXJ returned 238.04%, showing miners' long-term advantage.
Which Fund Fits Which Goal
GLD offers direct gold exposure with the least loss. GDX offers stronger long-term performance. GDXJ has higher volatility without extra payoff.
At a glance
GLD fell 7.12%, GDX dropped 13.18%, and GDXJ slid 14.52% over the past month as gold pulled back.
