Gold mining ETFs were among Monday’s highest flyers.
Front month Comex gold prices rose 0.29% to $1,212.10 per troy ounce, giving gold-mining stocks and the exchange-traded stocks that track them, a lift.
Sprott Junior Gold Miners (SGDJ) was among the best performers on Monday, climbing more than 3%. While Sprott Gold Miners (SGDM) rose 2.6% and VanEck Vectors Junior Gold Miners (GDXJ) gained 2.5%. Oddly, the VanEck Vectors Gold Miners (GDX) didn’t fly as high, notching up just 1.4%.
This is why investors should pay close attention to index construction. Sprott Junior Gold Miners tracks an index of 36 stocks compared to VanEck’s 70-stock index. Sprott’s concentrated bets were an advantage today, but it may not be over the long-term. Big positions in top holdings such as Iamgold (IMG) and Alamos Gold (AGI) helped, with only two small-cap Canadian stocks in the bunch in the red.
VanEck’s fund also held Iamgold and Alamos, but in smaller portions. Eleven stocks in the ETF’s underlying basket saw declines. Perseus Mining was a big loser, falling more than 5% to around CAD 0.28 or less than a quarter in U.S. dollars.