Gold Mining Tops In June: 5 Best ETFs, Stocks

Gold was on a rise in June and recorded its best month in three years, climbing about 8%. The rally was primarily driven by hopes of loose monetary policies across the globe and flight to safe haven owing to rising geopolitical tensions and global growth worries.

In particular, the Federal Reserve has opened the door for interest rate cuts as soon as next month. Lower rates will continue to weigh on the dollar against the basket of currencies, raising the yellow metal’s attractiveness as it does not pay interest like fixed-income assets. Additionally, other major central banks have also been adopting easy money policies that have boosted the yellow metal.

A combination of factors including falling yields, trade gyrations between the United States and China as well as escalation in U.S.-Iran tensions spurred demand for the yellow metal as a great store of value and hedge against market turmoil.

Further, gold purchases by central banks have soared this year. Holdings in gold-backed exchange-traded funds are at the highest since 2013, according to data compiled by Bloomberg.

Based on the bullish fundamentals, gold price surpassed the key $1,400 level for the first time since April. Acting as a leveraged play on the underlying metal prices, metal miners tend to experience more gains than their bullion cousins in a rising metal market.

Given this, we highlight five gold mining ETFs and stocks that led the market in June. These could be excellent plays for investors, who believe that gold will continue to move higher given the rocky fundamentals.

iShares MSCI Global Gold Miners ETF (RING - Free Report): Up 21.1%

This ETF offers exposure to companies that derive the majority of their revenues from gold mining. It follows the MSCI ACWI Select Gold Miners Investable Market Index and holds 35 securities in its portfolio. About half of the portfolio is allotted to Canadian firms while the United States, South Africa, and Australia round off the next three with double-digit exposure each. The fund charges 39 bps in fees and expenses, and trades in good volume of 195,000 shares per day. It has been able to manage assets worth $240.9 million.

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