Junior Gold Miners ETF Investment Analysis and Insights

Investing in junior gold miners ETFs can be a great way to gain exposure to the gold mining industry without directly investing in individual companies. Junior gold miners are smaller, riskier companies that are often more likely to make big discoveries.

These companies typically have smaller market capitalizations and are more volatile than larger gold mining companies. This can make them more attractive to investors looking for higher returns.

Junior gold miners ETFs offer a way to diversify your portfolio by investing in a basket of these smaller companies. This can help reduce risk and increase potential returns.

Some junior gold miners ETFs have outperformed their larger counterparts in recent years, making them a compelling investment option for those looking to capitalize on the gold mining industry's growth.

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Expenses play a significant role in determining the overall performance of the Junior Gold Miners ETF. The management fee alone is 0.35% of the assets under management (AUM).

This fee is relatively low compared to other investment options. However, when combined with other expenses, the total annual fund operating expenses can be quite high, reaching 0.53% of the AUM.

Breaking down the expenses further, we can see that the administrative fee is not explicitly stated, but the 12b-1 fee is not applicable. The administrative fee is typically a small percentage of the AUM, ranging from 0.10% to 0.25%.

The turnover rate provides a proxy for the trading fees incurred by the fund manager. A higher turnover rate means higher trading fees, which can eat into the fund's returns. In the case of the Junior Gold Miners ETF, the turnover rate is 24.00%, which is higher than the category average.

Here's a summary of the key expenses associated with the Junior Gold Miners ETF:

These expenses can impact the fund's performance and returns. It's essential to consider these costs when evaluating the Junior Gold Miners ETF as an investment option.

The Sprott Junior Gold Miners ETF has shown strong performance, with a 1-year return of 20.45% and a 3-year return of -2.29%.

The ETF's market price has also seen significant growth, with a 1-year return of 20.77%. This is slightly higher than the net asset value return of 20.45%.

The Solactive Junior Gold Miners Custom Factors Index TR serves as the ETF's benchmark, and it has also seen impressive returns, with a 1-year return of 21.25%.

Here are the returns for the Sprott Junior Gold Miners ETF and its benchmark for the past 1 and 3 years:

The S&P 500 Total Return Index has seen even stronger returns, with a 1-year return of 25.02% and a 3-year return of 8.94%. This highlights the potential volatility of the junior gold miners market compared to the broader U.S. equities market.

At the end of each month, investors want to know how their investments are performing. The average annual total returns for the Sprott Junior Gold Miners ETF, as of December 31, 2024, were a whopping 20.45% for both the Net Asset Value and Market Price.

The 1-month return for the Sprott Junior Gold Miners ETF (Net Asset Value) was -6.04%, which is a significant drop. In contrast, the 3-month return was -4.24%.

The Sprott Junior Gold Miners ETF (Market Price) had a 1-month return of -5.65% and a 3-month return of -4.25%. These numbers show the impact of market fluctuations on investment values.

Here's a quick rundown of the 1-month returns for the different funds mentioned:

Returns less than one year are not annualized, so keep that in mind when comparing short-term performance.

Market Price is based on the midpoint of the bid/ask spread at 4 p.m. ET, and it doesn't reflect the returns an investor would receive if shares were traded at other times.

The Premium/Discount is the amount by which the selling or purchase price of an ETF is greater than or less than its face amount/value or net asset value (NAV), expressed in dollars or percent.

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The Fund's Total Annual Operating Expenses are outlined in the most recent prospectus, and for the services the Adviser provides, the Adviser is entitled to receive an annual advisory fee from the Fund at an annual rate of 0.75% of net assets.

From July 22, 2019 forward, the Fund's underlying Index is the Solactive Junior Gold Miners Custom Factors Index (SOLJGMFT), which was created by Solactive AG to track the performance of junior gold mining companies.

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The Sprott Junior Gold Miners ETF, also known as GDXJ, has seen its fair share of ups and downs in the market. As of 12/31/2024, its average annual total returns were 20.45% for both Net Asset Value and Market Price, indicating a strong performance in the junior gold mining sector.

One notable aspect of GDXJ's performance is its consistency across different time frames. For instance, its 1-year return was also 20.45% for both Net Asset Value and Market Price, highlighting its ability to maintain momentum over time.

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However, it's worth noting that GDXJ's performance can vary significantly compared to broader market indices. For example, the S&P 500 Total Return Index had a 25.02% return for the same period, outpacing GDXJ's performance.

Here's a breakdown of GDXJ's performance over the past few years:

As you can see, GDXJ's performance has been influenced by various market conditions, but it has managed to maintain a relatively stable position within its category.

The junior gold miners ETF holds a diverse portfolio of 35 stocks, excluding cash and cash equivalents, which are subject to change. The top 10 holdings in the portfolio make up a significant portion of the overall value, with Alamos Gold Inc holding the largest stake at 6.62%.

The ETF's asset allocation is heavily skewed towards stocks, with a weighting of 99.95% and a return range of 81.34% to 119.48%. In contrast, cash and other assets make up a relatively small portion of the portfolio.

Here is a breakdown of the top 5 holdings in the portfolio, based on market value:

The holdings section of a portfolio provides valuable insights into the individual stocks that make up the overall investment. There are 35 holdings in this portfolio, excluding cash and cash equivalents.

The top 10 holdings in this portfolio are significant, with Alamos Gold Inc holding the largest percentage at 6.62%. This is a substantial allocation, indicating a strong focus on gold mining stocks.

A closer look at the top 10 holdings reveals a mix of established players and smaller companies, with Pan American Silver Corp and Harmony Gold Mining Co Ltd also making the cut. These companies are well-established in the industry, with a proven track record of success.

The holdings are diversified across various categories, with a focus on gold mining stocks. The category low and high for the number of holdings in this portfolio is 22 and 268 respectively, indicating a moderate level of diversification.

Here's a breakdown of the top 10 holdings in this portfolio:

Asset allocation is a crucial part of any investment strategy, and it's great to see that our holdings are heavily weighted towards stocks, with a whopping 99.95% allocation.

The return on stocks can vary greatly, ranging from a low of 81.34% to a high of 119.48%.

Cash, on the other hand, has a much lower allocation of 1.07%, but it's still worth noting that it can return around 13.94% at its highest.

Preferred stocks and other investments have negligible allocations of 0.00% and 0.00%, respectively, but they can still return around 0.71% and 16.71% at their highest.

Convertible bonds and bonds have the same allocation of 0.00%, but bonds have a slightly higher return potential of 3.33%.

Here's a breakdown of the asset allocation:

It's worth noting that the GDXJ % Rank provides a ranking of the asset class's performance relative to the GDXJ index.

The stock geographic breakdown is a crucial aspect of understanding how your investments are allocated.

According to the data, the US accounts for a significant 52.99% of the weighting.

This is a substantial portion of the overall portfolio, and it's essential to consider the performance of US-based holdings.

The return on investment (ROI) for US-based holdings ranges from 4.58% to 93.04%.

For comparison, non-US based holdings have a weighting of 46.95%.

Interestingly, non-US based holdings have a much lower ROI, ranging from 0.00% to 90.88%.

Here's a summary of the geographic breakdown:

Understanding the geographic breakdown can help you make informed decisions about your investments and allocate your assets effectively.

Let's take a closer look at the Net Income Ratio of our holdings. The GDXJ has a Net Income Ratio of 0.84%.

The category average is quite a bit lower, with a low of -18.00% and a high of 5.11%.