5 Best Mining ETFs

In this article, we discuss 5 best mining ETFs. If you want to read our discussion on the mining industry, head over to 10 Best Mining ETFs.

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.”