Laggard #2: Market Vectors Gold Miners ETF
I”ll be brief with this pan.
The Market Vectors Gold Miners ETF (GDX) is one of the 100 worst-performing ETFs in 2013. But what’s really striking is that it’s also one of the few ETFs on that list that doesn’t have some sort of leverage or shorting component to it.
A huge fund with $7.4 billion in total net assets, the GDX is down 46% year-to-date through Sept. 27. While it only lost 2% for the third quarter, it’s on a downswing that has seen GDX lose more than 10% in the past month alone.
Warren Buffett is right to question the value of gold. It serves no tangible purpose except as an object of fear and yet investors keep piling in. But if you’re a gold bug, buy the bullion itself — owning an ETF riddled with miners seems like overkill in the worst way.