Market Vectors Gold Miners ETF (NYSEARCA:GDX) is the largest gold miner-focused ETF, the main holdings of which are gold mining stocks like Barrick Gold Corp (NYSE:ABX), Newmont Mining Corp (NYSE:NEM) and GoldCorp Inc (NYSE:GG). Canadian companies form more than 50% of its total holdings. GDX has gained approximately 70% year-to-date, although it fell by 12% in the last month. Gold miners are much more sensitive to fluctuation in the price of gold, hence this ETF is more favorable for investors who prefer a higher beta. During the second quarter, the number of funds from our database holding GDX shares surged by seven to 43, and the aggregate value of their positions appreciated by 70% to $1.6 billion. This ETF is trading at $23 and has an expense ratio 0.53%.
With a market capitalisation of $27 billion, iShares Russell 2000 Index (ETF) (NYSEARCA:IWM) is currently trading at very close to its 52-week high of $125.8, and has returned 9% since the beginning of the year. Among the funds we track, 40 funds held shares of IWM worth $1.09 billion at the end of June, compared to $770.08 million held by 39 funds a quarter earlier. This ETF seeks to replicate the performance of Russell 2000 Index which comprises small cap stocks in the US. It is the largest small-cap ETF in the US and is highly liquid with a low expense ratio. Small cap stocks in general have a higher beta than large-caps and are more dependent on the performance of the domestic economy than the larger stocks. Investors who are more bullish on the US economy as compared to the global economy find this ETF to be more attractive, rather than the ETFs tracking broader market indices such as the S&P 500 and Dow Jones. On the negative side, IWM is more volatile and less diversified as compared to the large cap ETFs. IWM is a good way to play on the dynamism of the US, which is one of the world’s most innovative and open economies.
iShares MSCI Emerging Markets Indx (ETF) (NYSEARCA:EEM) has been a preferred choice for funds who want to invest in the emerging economies around the globe. It holds over 800 large and mid-cap emerging-market stocks worldwide. With the Fed expected to raise rates by the end of the year, the smart money is preferring to stay away from the risks of investing in emerging market stocks. This is also reflected in the number of funds tracked by us holding this ETF, which slid to 39 from 45 during the second quarter, while the aggregate value of their holdings also decreased by 43% to $2.6 billion. Major emerging markets such as Brazil, South Africa, Russia and others are also facing major political and social issues besides economic headwinds from falling commodity prices. All these uncertainties have made the fund holders less bullish on emerging economies. The ETF is currently trading at $38 nearly equal to its 52 week high price and has returned more than 10% in the last three months. The dividend yield stands at 2.01%.
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