New Gold Mining Slated To Begin Trading On Nov. 11 (GDXJ)
The ETF Professor has mentioned the Market Vector Gold Miners ETF (NYSE: GDX) quite a few times as gold has been making new highs and that's been the right thing to do as GDX is up about 6% in the past five days.
So the question becomes if you like GDX will you love its junior equivalent? That's right, the Market Vector Junior Miners ETF (NYSE: GDXJ) is slated to begin trading on Wednesday November 11, 2009.
GDXJ is comprised of about 40 small and midcap companies from around the world that derive at least 50% of their revenue from gold and silver mining. Regional exposure is heavily biased to North America with Canada accounting for 62% of GDXJ's holdings and the U.S. making up another 20%.
Perhaps you're like the ETF Professor in that you get a lot of those annoying emails (and some snail mail) talking about yet another gold penny stock poised to rise from 50 cents to $20. Well, every now and then those stocks do provide good returns. If nothing else junior miners are volatile and that could mean there will be some good trading opportunities with GDXJ.
If you're looking to speculate on the junior miners and can't pick just one or two, GDXJ could be for you. From an investment standpoint, the Professor still prefers GDX, but the little brother could be worth watching.
