New Gold Miners ETF Eliminates ‘Other Metals’ (GGGG, GFI, KGC, AU, EGO, HMY)

There is a new gold ETF on the market.  Yesterday marked the launch of the Global X Pure Gold Miners ETF (NYSE: GGGG).  Global X noted that its new ETF focuses globally on companies which are deemed to be pure-plays on gold mining with a vast majority of revenues coming from gold mining alone rather than gold mining plus other metals mining. The aim here is to stand out from the NYSE Arca Gold Mining Index, which Global X says actually includes several silver miners.  In this new ETF some 95% of the revenues from the companies in the Solactive Index come from gold mining.

The Global X Pure Gold Miners ETF is a global fund and is not limited to US markets nor just to North America.  As of March 15, 2011, the Fund includes companies based in Canada, the United States, the United Kingdom, Hong Kong, Australia and Turkey.  As of March 10, 2011, the three largest components of the index were Gold Fields Ltd. (NYSE: GFI), Polyus Gold, and Kinross Gold Corporation (NYSE: KGC).  Other key holdings are AngloGold Ashanti Ltd. (NYSE: AU), Eldorado Gold Corp. (NYSE: EGO), Harmony Gold Mining Co. Ltd. (NYSE: HMY) and others.  A full list of the global holdings inside this ETF is here.

Management Fee is listed as 0.59% and the custody fee is 0.00%, for an annual fund operating expense of 0.59%.

JON C. OGG