Gold miner exchange traded funds stumbled Wednesday along with bullion prices, dragging the stock ETFs to fresh 52-week lows.
Market Vectors Gold Miners (NYSEArca: GDX) fell 3% while Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) was down nearly 4%.
Leveraged ETFs following the sector saw even larger moves Wednesday — NUGT (Direxion Daily Gold Miners Bull 3X) and DUST (Direxion Daily Gold Miners Bear 3X). [ETF Chart of the Day: Gold vs. Miners]
Gold miner ETFs have lagged the price of bullion in 2011 and are set to end the year with losses. [Gold Miner ETFs Look to Catch Up to Bullion in 2012]
Market Vectors Gold Miners was off about 16% heading into Wednesday’s trading, while bullion-backed ETFs such as ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) are up more than 10%.
Other miner ETFs include Global X Silver Miners (NYSEArca: SIL), PowerShares Global Gold and Precious Metals (NasdaqGM: PSAU), Global X Copper Miners (NYSEArca: COPX) and Global X Gold Explorers (NYSEArca: GLDX).
Earlier this year, hedge fund manager David Einhorn said a “substantial disconnect has developed between the price of gold and the mining companies.” [Are Gold Miner ETFs Undervalued?]