Worst ETFs – Market Vectors Gold Miners ETF (GDX)
The fact that a gold ETF was one of the worst this year should hardly be surprising. Gold simply hasn’t had a good year; just look at the SPDR Gold Shares (GLD). The GLD ETF is down almost 28% with only a few days of trading left in 2013.
Plus, the GLD ETF is probably a better investment than the Market Vectors Gold Miners ETF (GDX). The GDX ETF invests in 33 companies … primarily gold miners. These miners have fixed costs and when the price of gold drops, they’re in a heap of trouble unless they’ve managed to hedge against the inevitability. Most haven’t — yet. As a result, the GDX ETF is down 54% year-to-date.
Investing in gold might have some merit; investing in gold miners not so much.