The VanEck Gold Miners ETF is a diversified bet on gold miners. The YieldMax Gold Miners Option Income Strategy ETF adds a layer of very attractive weekly cash distributions on top of diversified gold miner exposure. I share why GDX is a superior ETF to GDXY.
In 2025, gold has felt like one of the most unstoppable assets in financial markets. The yellow metal has been reaching new all-time highs repeatedly.
Generating a notable amount of monthly income can look like a daunting task.
A significant market event is capturing global investor attention as gold prices climb to historic levels, trading decisively above $3,500 an ounce. This new gold rush has prompted many to seek effective ways to participate in the rally.
GDX offers leveraged exposure to gold prices, outperforming physical gold ETFs due to operational leverage and strong mining margins amid global uncertainty. Political instability, de-dollarization, and potential rate cuts create a supportive macro backdrop for gold miners, driving demand and record central bank gold buying. GDX provides diversified, income-generating exposure to global miners trading at attractive valuations, with upside from buybacks, dividends, and reserve growth.
The lag between miners' profits and gold prices is narrowing, judging by the updated financials reported by leading stocks in GDX. Recent earnings show leading miners like NEM and AEM have rising margins and asset turnover, reflecting successful investments and easing cost pressures. For IAU, I expect central bank demand to support higher gold prices.
GDX hit a 52-week high, fueled by gold???s global demand surge and signs that its momentum may not be over yet.
GDXY ETF generates monthly income by selling options on GDX, balancing synthetic covered calls and Treasuries for stability and yield. The fund benefits from higher implied volatility and a weaker dollar, which support gold prices and option premiums. Current macro trends, including a steepening yield curve and potential dollar devaluation, create a favorable environment for GDXY's strategy.
The GDX ETF has strong performance compared to gold ETFs or even ETFs from other sectors of the economy. The fundamentals of revenue growth and cash flow are the pillars behind performance. Valuations are historically low, with upside potential of 25% to 50% based on P/E and P/NAV.
I reiterate my Hold rating on GDX after a powerful rally, as gold miners face mixed near-term technical and seasonal signals. GDX has outperformed the S&P 500 YTD, but momentum is cooling and August-September have historically been weak for gold miners. The ETF remains attractively valued, yet its top-heavy portfolio and bearish RSI divergence suggest caution is warranted for new buyers.
The burning-hot performance of gold miner stock ETFs this year has been something to watch. The much slower-burning investor appetite for it has been equally so.
GDX hits a 52-week high, surging 65.8% from its low as gold miners gain from rising metal prices and safe-haven demand.