In this article, we discuss 10 best mining ETFs.

Mining and metals operations are long-term investments. In today’s fast-changing environment, companies need to look ahead for sustainable growth. As highlighted by Deloitte, while many mining firms have general ESG goals, specific nature-related targets are rare. Often, ESG is treated separately from core business functions. For example, processes like site selection and mine planning continue as usual. However, nature’s impact is expected to affect mining companies directly or through supply chains in the next decade. This impact can create or destroy value in different scenarios. Reflecting these impacts in strategies and valuations is crucial. Developing skills and understanding will help companies protect against threats and make the most of opportunities. Moving forward, mining firms with an integrated approach to nature within their ESG strategy will have an advantage in funding, insurance, talent attraction, and securing permits and social approval.

According to KPMG, with the global economy transitioning toward a carbon-free future, a significant concern is whether mining and metals companies possess the capability to supply the increasing quantities of materials required for products like wind turbines, solar panels, and electric vehicles. These materials are essential for facilitating the shift to a net-zero world. The mining and metals industry, as per a global survey conducted by KPMG International, involving over 400 C-level executives representing diversified mining and metal production activities, ranging from steel to coal to lithium, appears to hold a strong belief in its capacity to meet these increasing demand projections. Optimistic viewpoints outnumbered pessimistic ones by nearly 12 to 1 in the survey results. However, among producers of materials critical to achieving a net-zero future, such as lithium and copper, the ratio slightly decreases to 6 to 1 in favor of optimism. KPMG International interviewed Rohitesh Dhawan, who serves as the President and CEO of the International Council on Mining & Metals, an organization representing a significant portion of the global industry. Dhawan, in his role as a representative of the industry, understands its crucial role in a range of issues during this pivotal period in history. He said:

“We’re entering a new phase that we’ve never had before. The world is now fully invested in our industry in a way it was not previously. This means that the things that got us here aren’t the things that will take us to the next phase in our relationship with society. It requires us to engage differently.”

As per PwC’s findings, mining revenue remained stable at $711 billion in 2022, marking another year of strong financial performance. However, rising costs and economic uncertainties led to a decrease in EBITDA margins from 32% to 29%. According to PwC, the market capitalization of the Top 40 miners tripled from $400 billion in 2003 to $1.2 trillion in 2022. The energy transition’s impact is expected to shape the industry for the next couple of decades. Miners will need to navigate the growing influence of governments and new entrants like automobile companies in the sector, while also positioning themselves well for the clean energy shift that relies on resource access. The focus on critical minerals dominated deal activities in 2022 as miners sought to take advantage of the global shift towards clean energy, driven by two key factors; firstly, these minerals’ pivotal role in clean energy technologies like batteries, electric vehicles, and solar and wind power; and secondly, their significance in national defense, technologies, and weaponry. Exploration in gold, copper, lithium, and cobalt saw notable growth in 2022. Given the growing demand and limited supply of critical minerals, continued investment in exploration for these minerals is essential for driving the energy transition. Andries Rossouw, PwC Africa Mining Leader, stated:

“Looking forward, the next 20 years has the potential to be as positive for the industry as the last 20 years. Demand for critical minerals—which fuels a growing boom in sustainability requirements like electric vehicles—requires miners to reinvent and reimagine how they will best support their clients and stakeholders globally. The high-demand era of critical minerals is now. It’s full of opportunity; but for those miners who do not reimagine and reinvent their operations by finding the right value-chain partners, they will likely miss out on the opportunity.”

In this article, we explore some of the best mining ETFs, which provide investors with access to companies like Newmont Corporation (NYSE:NEM), Agnico Eagle Mines Limited (NYSE:AEM), and Cameco Corporation (NYSE:CCJ). 

Our Methodology

We used an ETF screener and filtered out the best performing mining ETFs based on their 5-year performance. We have also discussed the top holdings of the ETFs to offer better insight to potential investors. These ETFs have amassed significant gains in the past 5 years. The list is ranked in ascending order of the 5-year performance of these mining ETFs as of September 9, 2023.

Best Mining ETFs

10. Global X Gold Explorers ETF (NYSE:GOEX)

5-Year Performance as of September 9: 27.18%

The Global X Gold Explorers ETF (NYSE:GOEX), which is one of the best mining ETFs, aims to reflect the price and yield performance of the Solactive Global Gold Explorers & Developers Total Return Index, prior to accounting for fees and expenses. This ETF grants investors access to a range of companies engaged in exploring gold deposits. It was introduced on November 3, 2010. As of September 8, 2023, the ETF’s total assets stand at $34.52 million, with an expense ratio of 0.65%. Its portfolio consists of 51 stocks.

Hecla Mining Company (NYSE:HL) is one of the top holdings of the Global X Gold Explorers ETF (NYSE:GOEX). Hecla Mining Company (NYSE:HL) offers precious and base metal properties in the United States and globally. The company engages in the extraction of silver, gold, lead, and zinc concentrates. It also handles carbon material containing silver and gold, which it sells to custom smelters, metal traders, and third-party processors. Additionally, the company deals in doré, a substance containing silver and gold.

According to Insider Monkey’s second quarter database, 18 hedge funds were bullish on Hecla Mining Company (NYSE:HL), compared to 17 funds in the prior quarter. Eric Sprott’s Sprott Asset Management held the largest position in the company, with 2.63 million shares valued at $13.56 million.

9. iShares MSCI Global Metals & Mining Producers ETF (BATS:PICK)

5-Year Performance as of September 9: 29.46%

The iShares MSCI Global Metals & Mining Producers ETF (BATS:PICK) aims to replicate the performance of the MSCI ACWI Select Metals & Mining Producers Ex Gold & Silver Investable Market Index. This index tracks global companies primarily engaged in mining, extraction, and production of various metals, excluding gold and silver. Launched on January 31, 2012, the ETF holds approximately $1.43 billion in net assets, with a portfolio containing 267 stocks as of September 9, 2023. The expense ratio is 0.39%.

BHP Group Limited (NYSE:BHP) is the largest holding of the iShares MSCI Global Metals & Mining Producers ETF (BATS:PICK). BHP Group Limited (NYSE:BHP) functions as a resource company with operations spread worldwide. The company’s activities are divided into Copper, Iron Ore, and Coal segments. Its operations include mining copper, silver, zinc, molybdenum, uranium, gold, iron ore, as well as metallurgical and energy coal.

According to Insider Monkey’s second quarter database, 23 hedge funds were long BHP Group Limited (NYSE:BHP), compared to 24 funds in the preceding quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company, with approximately 1.8 million shares worth $105.94 million.

Like Newmont Corporation (NYSE:NEM), Agnico Eagle Mines Limited (NYSE:AEM), and Cameco Corporation (NYSE:CCJ), BHP Group Limited (NYSE:BHP) is one of the best mining stocks to buy.

Here is what Harding Loevner has to say about BHP Group Limited (NYSE:BHP) in its Q1 2021 investor letter:

“Our purchase of Australian mining company BHP is an example of a quality company at a moderate valuation that should deliver attractive long-term returns. We believe the market has undervalued its enduring competitive advantage due to its low cost iron and copper mining operations which has allowed the company to deliver consistent profits and cash flows across the inevitable ups and downs of the global metals cycle. While the variability of commodity prices prevents BHP from scoring in the top ranks of measured quality, we are willing to bear some of that uncertainty in return for a more attractive valuation given the company’s strong business fundamentals.”

8. U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE:GOAU)

5-Year Performance as of September 9: 46.70%

The U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE:GOAU), recognized as one of the best mining ETFs, grants investors access to companies involved in the production of precious metals. This involvement can be either active, such as mining or production, or passive, like holding royalties or production streams. The ETF is based on the U.S. Global GO GOLD and Precious Metal Miners Index. It was introduced on June 27, 2017. As of September 7, 2023, the fund’s net assets total $87.9 million, with an expense ratio of 0.60%. The ETF’s portfolio consists of 28 stocks.

Franco-Nevada Corporation (NYSE:FNV) is a prominent holding of the U.S. Global GO GOLD and Precious Metal Miners ETF (NYSE:GOAU). Franco-Nevada Corporation (NYSE:FNV) functions as a company focused on gold-related royalties and streaming. It operates in Latin America, the United States, Canada, and internationally. The company is divided into two segments – Mining and Energy.

According to Insider Monkey’s second quarter database, 23 hedge funds were bullish on Franco-Nevada Corporation (NYSE:FNV), in contrast to the last quarter, when 31 funds had invested in the stock. Jean-Marie Eveillard’s First Eagle Investment Management is the largest position holder in the company, with 2.2 million shares worth $311.76 million.

Here is what Horizon Kinetics has to say about Franco-Nevada Corporation (NYSE:FNV) in its Q3 2022 investor letter:

“Back to basic principles. We don’t hold gold in client portfolios, we hold gold royalty companies. The two have surprisingly little in common. The gold royalty company generates very impressive profits even if the gold price never rises, and it earns those profits year after year. Here is a long-term chart of Franco Nevada Corp., the premier gold royalty company vs. gold itself: a comparable gold price today than a decade ago, yet Franco Nevada returned 12.5% annually, matching the S&P 500 return, despite its nearsole source of revenues unchanged. What will Franco Nevada’s earnings and share price do if gold rises over the course of a decade?”

7. VanEck Steel ETF (NYSE:SLX)

5-Year Performance as of September 9: 50.67%

The VanEck Steel ETF (NYSE:SLX) aims to closely replicate the price and yield performance of the NYSE Arca Steel Index. This index is designed to reflect the overall performance of companies within the steel sector. VanEck Steel ETF (NYSE:SLX) is one of the best mining ETFs. The ETF was introduced on October 10, 2006. As of September 8, 2023, the fund holds net assets totaling $121.50 million, with a portfolio including 26 stocks. Its net expense ratio is 0.56%.

Rio Tinto Group (NYSE:RIO) is one of the top holdings of the VanEck Steel ETF (NYSE:SLX). Rio Tinto Group (NYSE:RIO) is involved in the global exploration, mining, and processing of mineral resources. The company’s operations are categorized into Iron Ore, Aluminium, Copper, and Minerals Segments. Additionally, Rio Tinto Group (NYSE:RIO) owns and manages open pit and underground mines, and facilities such as refineries, smelters, concentrators, and power stations.

According to Insider Monkey’s second quarter database, 29 hedge funds were bullish on Rio Tinto Group (NYSE:RIO), compared to 33 in the previous quarter. Brandon Haley’s Holocene Advisors held a significant position in the company, with 869,470 shares worth $55.5 million.

HL International Equity Strategy made the following comment about Rio Tinto Group (NYSE:RIO) in its first quarter 2023 investor letter:

“In terms of geographical performance, the eurozone emerged as the top-performing region, and our stocks did better still, fueled by the strong performance of Infineon, L’Oréal, and Schneider Electric. EMs, which lagged the index, were boosted by the improving outlook for semiconductor companies TSMC and Samsung. Mexico’s FEMSA also contributed strongly to relative returns. Europe ex EMU was the weakest region primarily due to the underperformance of SE Banken and UK miner Rio Tinto Group (NYSE:RIO). The latter was affected by concerns over softer iron ore pricing in the current year, another reflection of manufacturing weakness in steelmaking giant China.”

6. SPDR S&P Metals and Mining ETF (NYSE:XME)

5-Year Performance as of September 9: 51.77%

The SPDR S&P Metals and Mining ETF (NYSE:XME) seeks to deliver investment outcomes that align with the total return performance of the S&P Metals and Mining Select Industry Index. It provides exposure to the metals and mining sector within the S&P Total Market Index, including sub-industries like Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel. Launched on June 19, 2006, the fund holds assets under management valued at $1.73 billion as of September 7, 2023. Its portfolio includes 32 stocks, and it features an expense ratio of 0.35%. It is one of the best mining ETFs to monitor. 

United States Steel Corporation (NYSE:X) is one of the top holdings of the SPDR S&P Metals and Mining ETF (NYSE:XME). United States Steel Corporation (NYSE:X) is a manufacturer and distributor of flat-rolled and tubular steel products, primarily serving markets in North America and Europe. The company’s operations are divided into four segments – North American Flat-Rolled, Mini Mill, U. S. Steel Europe, and Tubular Products.

According to Insider Monkey’s second quarter database, 33 hedge funds were bullish on United States Steel Corporation (NYSE:X), up from 30 in the previous quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP held the largest position in the company, with 6.13 million shares valued at $153.4 million.

Like Newmont Corporation (NYSE:NEM), Agnico Eagle Mines Limited (NYSE:AEM), and Cameco Corporation (NYSE:CCJ), United States Steel Corporation (NYSE:X) is one of the best mining stocks to buy.

5. VanEck Gold Miners ETF (NYSE:GDX)

5-Year Performance as of September 9: 57.62%

The VanEck Gold Miners ETF (NYSE:GDX) aims to closely mirror the price and yield performance of the NYSE Arca Gold Miners Index. This index is designed to reflect the overall performance of companies operating in the gold mining sector. The ETF was introduced on May 16, 2006. As of September 8, 2023, the fund holds net assets amounting to $11.39 billion, including a portfolio of 57 stocks. Its expense ratio is 0.51%. VanEck Gold Miners ETF (NYSE:GDX) is one of the best mining ETFs.

Newmont Corporation (NYSE:NEM) is the largest holding of the VanEck Gold Miners ETF (NYSE:GDX). Newmont Corporation (NYSE:NEM) is involved in the exploration and production of gold, alongside exploring for other minerals such as copper, silver, zinc, and lead. The company operates in the United States, Canada, Mexico, Dominican Republic, Peru, Suriname, Argentina, Chile, Australia, and Ghana.

According to Insider Monkey’s second quarter database, 49 hedge funds were bullish on Newmont Corporation (NYSE:NEM), in contrast to the last quarter when 52 funds had invested in the stock. Jean-Marie Eveillard’s First Eagle Investment Management is the largest stakeholder of the company, with 18.45 million shares valued at $787.2 million.

Here is what First Eagle Investments Global Fund has to say about Newmont Corporation (NYSE:NEM) in its Q2 2022 investor letter:

“Shares of Colorado-based Newmont, the largest gold miner in the world, experienced weakness in the quarter as falling gold bullion prices and cost inflation hurt miners in general. More idiosyncratically, the company reported slightly disappointing earnings and production results for its most recent quarter due to pandemic-related disruptions, ongoing supply-chain constraints, and labor shortages.

It also warned that operating costs for 2022 were likely to come in at the upper end of previous guidance. We remain constructive on the stock, which offers steady production anchored in good jurisdictions, a good pipeline of organic projects, a strong balance sheet, and proven management.”

4. Sprott Gold Miners ETF (NYSE:SGDM)

5-Year Performance as of September 9: 58.52%

Next on the list of the best mining ETFs is the Sprott Gold Miners ETF (NYSE:SGDM), which seeks to achieve investment outcomes that align with the performance of the Solactive Gold Miners Custom Factors Index. This index is designed to monitor the performance of larger gold companies listed on Canadian and significant U.S. exchanges. Launched on July 15, 2014, the ETF, as of September 9, 2023, holds net assets worth $225 million. The total operating fee is set at 0.50% and the portfolio comprises 31 stocks.

Agnico Eagle Mines Limited (NYSE:AEM) is one of the largest holdings of the Sprott Gold Miners ETF (NYSE:SGDM). Agnico Eagle Mines Limited (NYSE:AEM) is a gold mining company engaged in the exploration, development, and production of precious metals. The company operates mines in Canada, Australia, Finland, and Mexico. Additionally, Agnico Eagle Mines Limited (NYSE:AEM) is involved in exploration and development efforts in Canada, Australia, Europe, Latin America, and the United States.

According to Insider Monkey’s second quarter database, 42 hedge funds were bullish on Agnico Eagle Mines Limited (NYSE:AEM), same as the preceding quarter. Jean-Marie Eveillard’s First Eagle Investment Management held the largest position in the company, with 6.3 million shares worth $313.3 million.

Old West Management made the following comment about Agnico Eagle Mines Limited (NYSE:AEM) in its Q4 2022 investor letter:

“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”

3. L&G Gold Mining UCITS ETF (BIT:AUCO)

5-Year Performance as of September 9: 70.23%

The L&G Gold Mining UCITS ETF (BIT:AUCO) seeks to replicate the performance of the Global Gold Miners Index. This index tracks the leading gold mining companies that generate at least 50% of their revenue from gold mining activities. The ETF fully replicates the index’s performance and reinvests accumulated dividends. L&G Gold Mining UCITS ETF (BIT:AUCO) is one of the best mining ETFs. The fund currently has an expense ratio of 0.65%.

Gold Fields Limited (NYSE:GFI) is one of the top holdings of the L&G Gold Mining UCITS ETF (BIT:AUCO). Gold Fields Limited (NYSE:GFI) is a gold producer that operates in Chile, South Africa, Ghana, West Africa, Australia, and Peru. The company also explores for copper deposits. It owns nine operating mines and holds significant gold mineral reserves and resources.

According to Insider Monkey’s second quarter database, 21 hedge funds were bullish on Gold Fields Limited (NYSE:GFI). This number increased from the previous quarter when 12 funds had invested in the stock. William B. Gray’s Orbis Investment Management is the largest position holder in the company, with 8.7 million shares worth $120.15 million.

Here is what Baron Funds specifically said about Gold Fields Limited (NYSE:GFI) in its Q2 2022 investor letter:

“Gold Fields Limited (NYSE:GFI) is an established gold producer based in South Africa with a diversified global portfolio of precious metals assets. Shares fell due to the pullback in gold prices and the company’s announced acquisition of gold producer Yamana Gold at a large premium. We are positive on gold prices and expect continuous improvements in Gold Fields’ cash costs. We expect at least 50% production growth over the next decade as the company ramps up volumes, including Yamana’s high quality development projects in Chile, Canada, and Brazil.”

2. Global X Copper Miners ETF (NYSE:COPX)

5-Year Performance as of September 9: 76.04%

The Global X Copper Miners ETF (NYSE:COPX), one of the best mining ETFs, aims to match the price and yield performance of the Solactive Global Copper Miners Total Return Index, excluding fees and expenses. This ETF grants investors access to a diversified selection of copper mining companies. Launched on April 19, 2010, the fund, as of September 8, 2023, holds net assets totaling $1.53 billion and comes with an expense ratio of 0.65%. Its portfolio consists of 39 stocks.

Southern Copper Corporation (NYSE:SCCO) is one of the largest holdings of the Global X Copper Miners ETF (NYSE:COPX). It is involved in the mining, exploration, smelting, and refining of copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. 

According to Insider Monkey’s second quarter database, 25 hedge funds were bullish on Southern Copper Corporation (NYSE:SCCO), up from 19 funds in the last quarter. Paul Marshall and Ian Wace’s Marshall Wace LLP is the leading stakeholder of the company, with 563,758 shares worth $40.44 million.

1. Sprott Uranium Miners ETF (NYSE:URNM)

5-Year Performance as of September 9: 210.62%

The Sprott Uranium Miners ETF (NYSE:URNM) ranks 1st on our list of the best performing mining ETFs. It  seeks to invest a minimum of 80% of its total assets in securities of the North Shore Global Uranium Mining Index. This index is designed to closely track the performance of companies that allocate at least 50% of their assets to the uranium mining industry. This includes a variety of activities such as mining, exploration, development, and production of uranium, as well as holding physical uranium, owning uranium royalties, or engaging in other supportive activities for the uranium mining sector. The fund was launched on December 3, 2019. As of September 8, 2023, the fund’s net assets amount to $1.12 billion, and it offers an expense ratio of 0.83%. The fund has a portfolio comprising 37 stocks.

Cameco Corporation (NYSE:CCJ) is the largest holding of the Sprott Uranium Miners ETF (NYSE:URNM). Cameco Corporation (NYSE:CCJ) supplies uranium for electricity generation. The company operates in two segments – Uranium and Fuel Services. It sells uranium and fuel services to nuclear utilities across the Americas, Europe, and Asia.

According to Insider Monkey’s second quarter database, 54 hedge funds were bullish on Cameco Corporation (NYSE:CCJ). Comparatively, 49 hedge funds had invested in the stock in the preceding quarter. Richard Driehaus’ Driehaus Capital held the largest position in the company, consisting of 4.17 million shares valued at $130.8 million.

Aristotle Global Equity Strategy made the following comment about Cameco Corporation (NYSE:CCJ) in its Q4 2022 investor letter:

“Cameco Corporation (NYSE:CCJ), the world’s largest publicly traded uranium producer, was the largest detractor for the quarter. The company announced a strategic partnership with Brookfield Renewable to acquire Westinghouse Electric Company, one of the world’s largest nuclear services businesses, for a total enterprise value of $7.87 billion. Cameco’s 49% interest in Westinghouse will be funded with cash, equity issuance and debt. While the announcement and resulting equity issuance came as a surprise, our initial impression is positive. Industry consolidation and management’s prior prudence (i.e., net cash balance sheet and shutting production in tough times), we believe, uniquely positioned Cameco to pursue this strategic transaction. We recognize the deal increases Cameco’s financial leverage; however, we believe Westinghouse’s market-leading downstream capabilities will align well with Cameco’s production and fuel services to offer a highly competitive nuclear fuel solution. In addition to the acquisition, the company announced the production of the first packaged pounds of uranium since restarting McArthur River mine and Key Lake mill. Moreover, Cameco signed a uranium supply agreement with China Nuclear International Corporation, a subsidiary of one of the country’s largest nuclear power operators, China National Nuclear Corporation. We believe these events highlight Cameco’s continued market leadership and opportunistic mindset in a fast-changing energy landscape.”

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Disclosure: None. 10 Best Mining ETFs is originally published on Insider Monkey.