Gold Mining ETFs Heat Up On M&A Buzz

The transaction will result in annual savings of $100 million and is expected to be immediately accretive to Newmont's net asset value and cash flow per share. The deal is expected to close in the second quarter of 2019 and is subject to approval from shareholders of both companies as well as regulators in Europe, Canada, South Korea, and Mexico.

ETF in Focus

The M&A buzz has put the spotlight on gold mining ETFs. Below, we have highlighted a couple of them that have the three gold mining companies among their top five holdings and are likely to be the big movers in the weeks ahead.

VanEck Vectors Gold Mining ETF (GDX - Free Report)

This is the most popular and actively traded gold miner ETF with AUM of $10.9 billion and average daily volume of around 48.3 million shares. The fund follows the NYSE Arca Gold Miners Index, holding 45 stocks in its basket. Barrick Gold and Newmont occupy the top two positions with 11.2% and 8.2% share, respectively, while Goldcorp takes the seventh spot with 4.8% allocation. Canadian firms account for more than half of the portfolio while Australia (17.2%) and the United States (14.3%) round off the top three. The fund charges 53 basis points (bps) in annual fees.

iShares MSCI Global Gold Miners ETF (RING - Free Report)

This ETF tracks the MSCI ACWI Select Gold Miners Investable Market Index and holds 35 securities in its portfolio. Barrick Gold and Newmont occupy the top two positions with more than 14% share each while Goldcorp takes the fourth spot with a 6.5% share. Canadian firms take more than half of the portfolio, while the United States and Australia round out the top three with a double-digit exposure each. RING is the cheapest choice in the gold mining space, charging 39 bps in fees and expenses. The fund has been able to manage assets worth $218.7 million and trades in good volume of 281,000 shares per day.

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