Gold Is Still Historically High. Is VanEck Gold Miners ETF or Sprott Gold Miners ETF the Better Way to Play Bullion's Strength?
Brendan Coffey, The Motley Fool
Tue, August 25, 2026 at 2:29 AM GMT+3 5 min read
The VanEck Gold Miners ETF (NYSEMKT:GDX) provides broad global exposure to gold mining companies, while Sprott Gold Miners ETF (NYSEMKT:SGDM) focuses on gold-producing companies situated in the United States and Canada.
Both funds offer investors a way to gain exposure to the gold mining industry without managing individual stock positions. While they share a 100% concentration in the basic materials sector, they vary in their cost structures, geographic mandates, and historical performance metrics.
Snapshot (cost & size)
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on Aug. 20, 2026.
The Sprott fund is slightly more affordable with a 0.46% expense ratio compared to 0.51% for the VanEck fund. This 0.05 percentage point difference may influence long-term costs, while the Sprott fund also provides a higher trailing distribution payout.
Performance & risk comparison
What's inside
VanEck Gold Miners ETF tracks the MarketVector Global Gold Miners Index, seeking to mirror the performance of global gold mining companies. Its largest positions include Agnico Eagle Mines Ltd (NYSE:AEM) at 10.9%, Newmont Corp (NYSE:NEM) at 10.7%, and Barrick Mining Corp (NYSE:B) at 7.5%. The fund holds 59 securities and is concentrated 100% in the basic materials sector. It launched in 2006. VanEck Gold Miners ETF has paid $0.63 per share over the trailing 12 months, which on its recent ~$99.85 share price works out to a 0.6% yield.
Sprott Gold Miners ETF targets gold producers in the U.S. and Canada that are traded on the Toronto Stock Exchange, the New York Stock Exchange, or NASDAQ. Its top holdings include Agnico Eagle Mines Ltd. at 9.6%, Barrick Mining Corp. at 7.4%, and Newmont Corp. at 7.4%. The fund maintains 48 holdings and, like its counterpart, is 100% invested in basic materials. It launched in 2014. Sprott Gold Miners ETF has paid $0.73 per share over the trailing 12 months, which on its recent ~$83.20 share price works out to a 1% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy?
Gold has more than doubled since the start of 2024. Investors seeking exposure to the historic gold rally without the time and expense of buying physical commodities can buy either of these ETFs and gain access to the precious metal.
There is good reason to be interested: The metal has been having one of its best runs in decades as investors have flocked to the yellow metal for its historic inflation-hedging characteristics.
Owning a collection of gold mining stocks, like GDX, the VanEck Gold Miners ETF, and SGDM, the Sprott offering, isn't a pure play on the price of gold, but they tracks rather closely. Studies show that the vast majority of the price movement of gold mining stocks is influenced by gold's price.
The benefit for stock ETF holders is that when gold prices rise, they usually outpace operating costs. That's because miners are pulling gold from the ground that they have already paid to acquire, while the royalties and other costs don't rise as high (though they do rise). That means in the early years of a gold rally, the higher prices flow mostly to the bottom line. As a bonus, both SGDM and GDX pay dividends.
Also a benefit to ETF holders: gold mining companies can make decisions that boost returns to shareholders, whether by increasing dividends or merging with another miner. Those gains can flow through to ETF shareholders, such as GDX and SGDM.
Yet because miners have rising costs, they can suffer more when the price of gold declines. Indeed, both are down year to date. GDX has lost 13.7% of its value and SGDM 14.5%.
Over the 3-, 5-, and 10-year timeframes, GDX has returned annualized 34.8%, 17.9%, and 10.4%. Those returns mildly (from half a percentage point to one and a half) outpace SGDM across all time periods. That could be because SGDM owns foreign listings of stocks in its portfolio, which means it could be facing foreign exchange headwinds.
Regardless, for investors looking to invest for the long term, go with the best fund over the long term. That's Vanguard's GDX.
Should you buy stock in VanEck ETF Trust - VanEck Gold Miners ETF right now?
Before you buy stock in VanEck ETF Trust - VanEck Gold Miners ETF, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and VanEck ETF Trust - VanEck Gold Miners ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $429,223!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,317,883!*
Now, it's worth noting Stock Advisor's total average return is 965% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of August 24, 2026.
Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Gold Is Still Historically High. Is VanEck Gold Miners ETF or Sprott Gold Miners ETF the Better Way to Play Bullion's Strength? was originally published by The Motley Fool
Yorumlar (0)
Giriş yaparak yorum yazabilirsin.
İlk yorumu sen yaz.