The VanEck Gold Miners ETF (GDX) is one of the most widely followed exchange-traded funds providing exposure to gold and silver mining companies. Launched in 2015, the ETF tracks the performance of the NYSE Arca Gold Miners Index, a benchmark composed of companies involved primarily in the mining of gold and, to a lesser extent, silver.
The ETF is rebalanced quarterly, and has a total expense ratio of 0.53%.
GDX ETF Chart
Rather than investing in physical gold bullion, the GDX fund provides investors with a way to gain indirect exposure to gold prices through publicly listed mining firms. The ETF includes companies headquartered across a variety of regions, including Canada, the United States, South Africa, China and Australia.
These firms range from large-cap mining giants to mid-tier producers with significant operating leverage to gold prices.
GDX is a market-cap-weighted ETF. This naturally tilts the fund toward industry leaders such as Newmont Corporation and Barrick Gold, though it also includes a selection of smaller producers to ensure broader representation of the sector.
VanEck Gold Miners ETF Performance
While 2023 was a somewhat subdued year for the ETF, 2024 marked a notable rally, with 2025 beginning with a surge, primarily due to the surge in gold prices. This surge follows the significant market volatility resulting from the tariffs implemented by US President Donald Trump.
Gold Mining Stocks Forecast
The Bull Argument: Of course, the primary bullish reasons for being long the GDX is the bullish outlook for gold itself as investors look for safe haven assets given the significant market uncertainty. In a February note, analysts at Rosenberg Research said, “Gold miners are one of the most underappreciated investment opportunities in the equity market.”
According to a report from The Globe and Mail, the firm believes that the outlook for gold miners “continues to shine bright, boosted by a surging commodity price that has no signs of slowing.” Meanwhile, in a March note, the investment firm told investors it expects gold to double within the next five years.
“We expect the current environment of elevated geopolitical risk, declining global interest rates, and strong secular flows to continue into 2026,” they stated. As a result, this should further the bullish case for the GDX.
The Bear Argument: Given the current environment, it is easy to be bullish on gold and gold mining stocks. However, it does not mean investors should ignore the potential bearish case. Mining stocks come with company-specific risks that physical gold does not.
Rising costs for energy, labour, and equipment can squeeze margins for some producers, while geopolitical risks — including changes in mining regulations, taxation, or political instability in key producing countries — are also a concern.
Our View: We believe that gold-related equities can serve as an effective way to gain diversified exposure to the precious metal. However, investors should be mindful of the ETF’s inherent risks and understand that performance is tied not just to the price of gold, but also to the operational and financial health of the companies it holds.
Who Should Invest in the GDX
The VanEck Gold Miners ETF may be a suitable option for several types of investors:
Precious Metals Bulls: Those with a positive outlook on gold prices may see the ETF as another way to gain exposure to the market, potentially benefitting from the operational leverage that miners typically provide in a rising price environment.
Diversified Portfolio Builders: While global stock markets have fallen, the ETF has risen due to the rise in gold prices. Investors looking to balance equity exposure with a hedge against macroeconomic uncertainty may find this ETF useful.
Risk-Tolerant Traders: Because of its volatility, GDX might appeal to more experienced investors who are comfortable with short-term price swings.
Gold Enthusiasts Seeking Equity Exposure: For those who prefer investing in businesses rather than commodities, the GDX ETF presents an alternative to buying bullion.
