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Market Vectors Gold Miners ETF Outperforming SPDR Gold Trust

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The Market Vectors Gold Miners ETF (NYSE: GDX) was up 2.03 percent Friday morning, while the SPDR Gold Trust (ETF) (NYSE: GLD) lagged, up 1.66 percent.

Traders may want to take note of the disparity between ETFs which hold gold stocks versus physical gold.

While GDX outperformed GLD after Friday’s open, over a longer time frame the numbers tell a different story. Over the past year, GLD is down 1.77 percent, while GDX is down 13.82 percent.

GLD largely reflects the performance of gold; GDX reflects the performance of the stocks it holds and how well those companies are managed as gold producers.

For example, Goldcorp Inc. (USA) (NYSE: GG) is one of GDX’s top holdings and it is down approximately 16 percent year-to-date.

Physical gold was down 1.53 percent over the past year and this is reflected in GLD’s performance.

GDX recently traded at $18.12, up 1.9 percent.

GLD recently traded at $114.68, up 1.7 percent.

Posted-In: Long Ideas Short Ideas Commodities Markets Trading Ideas ETFs


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