GDX ETF Review: Is VanEck Gold Miners Worth Buying?

VanEck Gold Miners ETF is the benchmark gold mining ETF with over $15 billion in AUM, holding major producers like Newmont, Barrick, and Agnico Eagle — providing leveraged exposure to gold prices through miners whose profit margins expand as gold rises above all-in sustaining costs.

Last updated: 2026-02-02 · Data: Yahoo Finance, fund prospectuses, SEC filings

What Is GDX?

The VanEck Gold Miners ETF tracks an index of global gold mining companies, providing leveraged exposure to gold prices through the companies that extract it. Launched in 2006, GDX holds major producers like Newmont and Barrick alongside mid-tier miners and precious metals royalty companies. The fund charges a 0.51% expense ratio and manages $25.8 billion in assets.

Current Snapshot

Why It Matters for Real Asset Investors

GDX serves as the amplified play on monetary debasement within the Energy Macro framework. While gold moves with currency devaluation, gold miners historically deliver 2-3x the returns of the underlying metal during bull markets — because their profit margins expand exponentially when gold prices rise above their fixed production costs.

This leverage cuts both ways. When gold retreats, miners fall harder because their operating leverage magnifies losses. The current 12.7% year-to-date decline reflects gold's pullback from recent highs, but the 144% one-year gain shows what happens when the debasement trade accelerates.

GDX fits the "hard money in a soft money world" thesis. As central banks continue expanding balance sheets and governments run structural deficits, gold miners become a leveraged bet on the inevitable currency devaluation. Unlike grid infrastructure or energy tollbooths, GDX doesn't generate stable cash flows — it's pure macro positioning for monetary chaos.

Top Holdings

Agnico Eagle Mines (8.9%) operates mines across Canada, Finland, and Mexico with some of the industry's lowest all-in sustaining costs around $1,100 per ounce.

Newmont Corp (8.9%) is the world's largest gold producer, with diversified operations across five continents and a focus on Tier 1 assets in stable jurisdictions.

Barrick Gold (7.3%) runs massive operations including the Cortez complex in Nevada and joint ventures in Africa, emphasizing cost discipline and shareholder returns.

Wheaton Precious Metals (5.0%) operates as a precious metals streaming company, providing upfront capital to miners in exchange for future metal deliveries at fixed prices.

AngloGold Ashanti (4.9%) produces from mines in Africa, Australia, and the Americas, with significant exposure to South African operations.

Gold Fields (4.8%) operates primarily in South Africa, Ghana, Australia, and Peru, focusing on mechanized mining and cost optimization.

Franco-Nevada (4.7%) is another streaming company that provides financing to miners and receives gold and other metals at predetermined prices.

How It Fits the Portfolio

GDX functions as tactical allocation for specific macro regimes rather than core infrastructure holding. Position sizing should reflect its volatility — typically 2-5% of total portfolio during favorable conditions, with flexibility to scale up when monetary debasement accelerates.

The ETF pairs well with physical gold positions because miners provide operational leverage while bullion provides insurance. It also complements energy infrastructure positions during stagflationary periods when both hard assets and leveraged commodity plays outperform financial assets.

Regime Signals

GDX outperforms during currency crisis periods, negative real interest rates, and early stages of inflation cycles. The fund typically struggles when real rates rise above 2% or when strong dollar policies take hold.

Watch for Federal Reserve pivot signals, Treasury curve inversions, and emerging market currency stress as leading indicators. GDX often front-runs gold itself during regime changes because miners' earnings leverage amplifies both the anticipation and reality of higher gold prices.

The recent volatility reflects macro uncertainty around Fed policy and dollar strength. If the debasement cycle resumes — through either renewed money printing or fiscal dominance — GDX offers leveraged exposure to the hard money trade.

Related Research

• Alabama Power Grid Risk Assessment
• Exxon Mobil (XOM) Tollbooth Analysis
• GDXJ: VanEck Junior Gold Miners ETF
• GLD: SPDR Gold Shares
• IAU: iShares Gold Trust

Frequently Asked Questions

Is GDX a good investment for gold exposure?

GDX offers leveraged gold exposure through mining equities — when gold rises 10%, GDX historically moves 15-25%. The fund holds the largest, most liquid gold miners globally, reducing single-stock risk. However, miners carry operational risks that physical gold does not: rising input costs, geopolitical risk in mining jurisdictions, and management execution. GDX is best for investors who want amplified gold upside and are comfortable with equity-like volatility.

What is the expense ratio of GDX?

GDX charges a 0.51% expense ratio, which is standard for a thematic mining ETF. While higher than physical gold ETFs like IAU (0.25%), GDX provides exposure to companies with growing reserves, dividend payments, and operating leverage — none of which physical gold offers. The expense ratio is competitive given the sector-specific research required to maintain the index.

What are the top holdings in GDX?

GDX's top holdings include Newmont Corporation, Barrick Gold, Agnico Eagle Mines, Franco-Nevada, and Wheaton Precious Metals. These are large-cap, globally diversified miners with mature production profiles. The fund also includes streaming and royalty companies that provide gold exposure with lower operational risk. The portfolio spans operations across North America, Australia, Africa, and Latin America.

How does GDX perform compared to gold bullion?

GDX has historically underperformed gold bullion over long periods due to mining cost inflation, dilutive equity issuances, and operational setbacks. However, during gold bull market phases, GDX can deliver 2-3x gold's returns over months to years. The key is timing — GDX is a momentum vehicle best used when gold is in a confirmed uptrend, not as a permanent allocation. Energy Macro uses GDX tactically alongside core physical gold positions.

For our complete allocation framework across real assets, infrastructure, and income strategies, see The Blackout Fortune Playbook.

Last updated: February 1, 2026 | Data: Yahoo Finance, VanEck filings