The Best Gold Fund To Own
A Seeking Alpha Contribution
- Gold miners have unique situations due to differing geographic, regulatory and currency risk, as well as different ore quality.
- Gold mining index ETFs are good for trading and short-term exposure.
- Long-term investors who plan on holding longer than three months should consider TGLDX instead.
Investors have flocked to index funds and ETFs due to their low cost, tax efficiency and transparency. The general rise of indexing has helped ETFs grow rapidly, taking market share from mutual funds, particularly actively managed funds. However, there are clear-cut cases of active managers outperforming their indexed competition. One example is the gold mining sector.
Since the inception of the Market Vectors Gold Miners ETF (NYSEARCA:GDX) in 2006, the fund has seen an incredible inflow of funds, to $7.1 billion as of January 23. The small cap edition, Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) has amassed $2 billion in assets since its inception in late 2009. The actively managed the Tocqueville Gold Fund No Load (MUTF:TGLDX), which was created back in 1998, has attracted only $1.3 billion in assets… continue reading.
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