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.”

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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