This gold and precious metal miners ETF is up nearly 60% year-to-date
(Kitco News) - In the world of surging precious metal ETFs, one fund is up nearly 60% year-to-date and investors should be paying attention, according to industry expert Frank Holmes.
The U.S. Global Go Gold and Precious Metal Miners ETF (GOAU), which focuses on gold and precious metals miners, is already up 56.20% year-to-date.
This is a massive surge for the ETF, especially when compared to some really well-known funds like the GDX and the GDXJ. The VanEck Vectors Gold Miners ETF (GDX) is currently up 44.14% year-to-date and the VanEck Vectors Junior Gold Min ETF (GDXJ) is up 39.21% year-to-date.
The GOAU was launched just over two years ago with an ability to adjust to gold cycles, stated U.S. Global Investors CEO Frank Holmes.
“We came up with a set of factors that allowed us to adapt an adjustable up and down cycles in gold,” Holmes told ETF Trends. “And it outperformed the GDXJ 92% of the time in rolling 12-month periods.”
This is why it is not surprising that the ETF has done so well in light of gold’s massive summer rally, which saw prices surge past the $1,500 an ounce level and even eye higher levels.
The ETF recalibrates after every quarter, noted Holmes, adding that 30% of the fund’s holdings are royalty companies and the rest are stocks that are chosen based on five factors identified by U.S. Global.
“We’re looking for those companies where revenue last quarter is above four quarters,” Holmes said. “There’s a momentum in the top line, and the IBIDA for last quarter is above the average for four quarters.”
There are currently 28 companies in GOAU’s holdings. “What has shown is that year-to-date, over the past twelve months, is it’s performed exceptionally well,” Holmes added.