|
Global X Joins Gold’s Bull Run
November 4, 2010
SAN DIEGO (ETFguide.com) – More investors and traders are jumping onto the precious metals bandwagon and a few ETF providers are joining them. Today, Global X Funds, a New York based provider of exchange traded funds, launched the Global X Gold Explorers ETF (NYSEArca: GLDX).
“Gold exploration companies offer high risk-return characteristics with the potential to strike a gold mine, literally,” CEO Bruno del Ama said.
Precious metals ETFs linked to gold (NYSEArca: IAU) and silver (NYSEArca: SLV) have been on a tear this year, rising by 22.61% and 46.62% respectively. With that sort of lights out performance more investors and financial professionals are looking to add metals exposure to their investment portfolios.
GLDX will compete with other gold mining ETFs like the Market Vectors Gold Miners ETF (NYSEArca: GDX) and the S&P Metals & Mining ETF (NYSEArca: XME). GDX has annual expenses of 0.53% whereas XME is slightly lower at 0.35%.
The Global X Gold Explorers ETF is benchmarked to the Solactive Global Gold Explorers Index which contains 30 of the largest and most liquid listed companies globally active in the exploration of gold. Top countries represented inside the fund are Canada (70.30%), the United States (17.83%) and Australia (9.50%).
“We believe an ETF is a fantastic structure to provide access to this segment of the gold mining industry” said Jose C. Gonzalez, Head of Operations. “This is the venture capital of gold, and GLDX offers the opportunity to capture the fantastic returns of one company striking gold while smoothing over the losses generated by failed projects.”
GLDX has annual expenses of 0.65%. |
