VanEck Gold Miners ETF is rated BUY, capitalizing on the disconnect between strong gold prices and underperforming mining stocks. GDX offers diversified exposure to 63 gold miners and royalty companies, mitigating company-specific risks while capturing sector upside if gold prices remain elevated. Recent GDX weakness is seen as a reset, not a cycle end; miners could rerate as higher margins and cash flows materialize over the next 6–12 months.
GDX: Calling The Bottom For Gold Miners
From America's founding to GDX's 20th anniversary, gold has remained a constant store of value, and VanEck has helped investors access it for nearly 60 years. Twenty years ago, the launch of our Gold Miners ETF (GDX) marked the start of VanEck's ETF business.
If you bought VanEck Gold Miners ETF (NYSEARCA:GDX) because you wanted leveraged exposure to a gold rally, the past decade delivered a quiet insult: a nearly identical fund charging less beat it, and physical gold beat it too.
The choice between the VanEck Gold Miners ETF (NYSEARCA:GDX) and the VanEck Junior Gold Miners ETF (NYSEARCA:GDXJ) looks cosmetic until you open the hood.
I reiterate my buy rating on the VanEck Gold Miners ETF, supported by strong fundamentals and attractive valuation. GDX's free cash flow/EV yield is at record highs, and its forward P/E and EV/EBITDA multiples are at five-year lows. A re-rating to 6x EBITDA implies a 20% upside, with technical and seasonal trends potentially acting as catalysts.
Gold ETFs remain well-positioned despite near-term volatility, supported by central bank buying, U.S.-Iran peace deal and their role as a portfolio diversifier.
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Gold continues to do what it has done for the better part of two years: grind higher with occasional sharp pullbacks.
Options volumes leaned bullish in both the SPDR Gold ETF (GLD) and VanEck Gold Miners ETF (GDX) on Tuesday.
VanEck Gold Miners ETF offers premier exposure to global gold miners, with top holdings and $26B AUM. I see GDX's recent pullback as an appealing risk/reward setup, supported by contrarian monetary policy expectations and strong central bank gold demand. GDX trades at a steep discount to the S&P 500, boasts strong unit economics, and benefits from secular de-dollarization and supply inelasticity.
Investors should properly account for systematic risk when investing in gold mining stocks or ETFs like the VanEck Gold Miners ETF. The market is still grappling with the reality of higher energy costs, which will continue to overshadow gold miners record-high margins in 2026. While the recent rout in gold mining stocks could give some room for speculation in the near term, direct exposure to gold remains a superior choice for long-term investors.