ETF News

Thus far in 2025, gold has been one of the top-performing asset classes, outperforming European equities, international equities, and U.S. equities. In the face of global trade uncertainty that unsettled markets in the first half of the year, the flight to safety has boosted gold’s appeal. Yet one segment of the equity market has delivered an even stronger performance this year: gold miners.

The price of gold directly shapes the fortunes of gold mining stocks. From a macroeconomic standpoint, persistent inflation concerns and evolving central bank policies create a cautiously optimistic outlook for the metal, even as it remains prone to volatility.

Trade uncertainties and geopolitical tensions continue to bolster demand for gold, which in turn supports gold mining equities. Recent steps to improve transparency around global gold reserves, such as audits of holdings in Fort Knox and London, have also strengthened market credibility, potentially reducing the risk premium investors assign to miners.

Investing in Gold Miners via ETFs

For investors, gold mining stocks can be a powerful diversifier in an equity portfolio, particularly in uncertain markets. Historically, they have shown high sensitivity to gold prices, often outperforming the metal during sustained bull markets but underperforming during downturns due to their leveraged exposure.

Canadian investors looking to gain access through ETFs may consider:

• Global X Gold Producers Index ETF (GLDX) seeks to replicate the performance of the Mirae Asset North American Listed Gold Producers Index, which is designed to provide exposure to diversified North American listed gold producers.
• BMO Equal Weight Global Gold Index ETF (ZGD) seeks to replicate the performance of the Solactive Equal Weight Global Gold Index, which reflects global securities in the gold industry.
• iShares S&P/TSX Global Gold Index ETF (XGD) seeks to replicate the performance of the S&P/TSX Global Gold Index, which includes producers of gold and related products, including companies that mine or process gold and the South African finance houses which primarily invest in, but do not operate, gold mines.
• Harvest Global Gold Giants Index ETF (HGGG), an equally weighted portfolio of the world’s leading and largest gold companies. The ETF tracks the Solactive Global Gold Giants Index TR.
• BMO Junior Gold Index ETF (ZJG) seeks to replicate the performance of the ow Jones North America Select Junior Gold Index. To be included in the Index as a constituent security, an issue generally must be: (i) a company's common shares or other securities that have the characteristics of common equities; and (ii) the security of a company that is incorporated in, or has its primary market listing in, Canada or the United States; and (iii) the securities which meet certain minimum trading volume thresholds.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.