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June 19, 2006
Is it GDX or XGD? Mon., 6/19/2006 6:33 PM
There are two precious metal equity ETF's in North America that all gold equity, bullion and futures traders must follow closely. Typically, these miners lead the gold bullion and the futures. Certainly there is a high correlation between all of these prices.
Most of the mid to large cap Toronto Stock Exchange listed gold and silver miners can be traded as a basket with XGD. The same type of gold and silver miner stock that is listed in the U.S. is available with GDX. Some stocks like Barrick, Goldcorp, and Glamis, in fact, are constituents of both ETF's.
So Canadians will buy one and Americans the other.
Even though the ETF components are a little different " Newmont (NYSE: NEM) for instance is in GDX but not XGD and GDX includes more small cap issues -- the two ETF's track closely.
The Van Eck sponsored GDX has 45 stocks in its index (here is the list along with weightings) (here is the excel file of the constituents).
The Barclays iShares XGD has 17 stocks in its index (here is the XGD list).
Both goldminer ETF's are tracking closely at this point, as the following chart shows.
Posted by Posted by Bill Cara on June 19, 2006 06:33:11 PM | Category: ETF , Goldminer Producers