What is the primary structural difference between GDX and GLDM?

GDX is an equity ETF that invests in shares of companies involved in mining gold, such as Newmont and AngloGold Ashanti. In contrast, GLDM is a commodities ETF designed to track the price of physical gold. This fundamental distinction means GDX exposes investors to corporate operational risks and stock market volatility, whereas GLDM aims to reflect changes in the gold spot price. Understanding this structure is crucial because the drivers of value for each fund differ significantly, with one relying on business performance and the other on commodity supply and demand dynamics.

How do the expense ratios of these two funds compare?

GDX has an expense ratio of 0.51%, while GLDM has a significantly lower expense ratio of 0.10%. This results in a 0.41 percentage point annual fee difference. For GDX, the higher cost reflects the active management and operational complexity required to track a basket of mining equities. GLDM, as a physical gold tracker, benefits from a simpler structure and lower management costs. When comparing ETFs, investors should consider that higher fees reduce net returns over time, especially in long-term holding periods, making the cost efficiency of GLDM a notable feature in this comparison.

What does the difference in dividend yield indicate?

GDX reports a dividend yield of 0.66%, whereas GLDM has a yield of 0.00%. This difference arises because GDX holds equity shares of mining companies, which may distribute profits to shareholders as dividends. GLDM, however, holds physical gold, which is a non-income producing asset. Therefore, GLDM cannot generate dividend income for investors. The yield from GDX is variable and depends on the profitability and dividend policies of the underlying mining companies, while the return from GLDM is primarily derived from capital appreciation based on gold price movements.

How do the top holdings differ between the two funds?

The funds have completely different top holdings. GDX lists major mining corporations such as Newmont at 10.91% and AngloGold at 5.02%. These are equity positions in operating companies. Conversely, data for GLDM's specific top holdings is not available in the provided dataset, though as a commodity fund, its primary asset is physical gold bullion. There are no shared top-10 holdings between the two. This highlights that GDX is a basket of stocks with corporate risks, while GLDM is a single-asset commodity vehicle with no overlap in the specific securities held.

What are the operational history differences between GDX and GLDM?

GDX was launched on May 22, 2006, giving it a long operational history of over 18 years. This extended timeframe provides a substantial track record for investors to analyse during various market cycles. GLDM, launched on June 25, 2018, has a much shorter history. While both funds are large, GDX's inception date allows for a deeper understanding of how the mining sector ETF behaves during different economic conditions. Investors considering these funds should weigh the benefit of a long-established product against the modern, lower-cost structure of the newer fund.

How does the risk profile of equity exposure differ from commodity exposure?

GDX tracks precious metal miners, exposing investors to equity market risks, operational failures, and management decisions. If a mining company faces regulatory issues or cost overruns, the ETF's value may decline even if gold prices rise. GLDM is commodities focused, aiming to avoid equity risk by tracking the price of physical gold. While GLDM is subject to gold price volatility and storage risks, it does not carry the specific business risks of individual companies. Therefore, GDX typically exhibits higher volatility correlated with stock markets, while GLDM correlates more closely with the spot price of gold.

What role do net assets play in ETF liquidity?

Both funds are substantial in size, with GDX holding $28.4 billion and GLDM holding $31.7 billion in net assets. High net assets generally indicate robust liquidity, making it easier for investors to buy and sell shares without significantly impacting the price. While GLDM has a larger asset base, both funds are large enough to attract institutional investors. However, asset size alone does not guarantee liquidity; trading volume is also a key factor. Nevertheless, the scale of both ETFs suggests that they are well-established market participants with significant investor interest.

How do market conditions affect gold miners versus gold bullion?

In rising gold price environments, mining stocks often outperform physical gold due to operational leverage, meaning profits can increase more than the price of the metal. However, if mining costs rise or equity markets fall broadly, miners may underperform even if gold is stable. Physical gold, represented by GLDM, generally acts as a store of value and hedges against inflation or currency devaluation. It lacks the profit-driven upside of miners but also avoids the risk of company-specific operational failures or negative equity market sentiment impacting the underlying businesses.

What concentration risks are present in GDX?

GDX exhibits concentration risk, with its top holding, Newmont, representing 10.91% of the fund. Other significant holdings include AngloGold at 5.02% and Coeur Mining at 2.29%. A substantial decline in the share price of Newmont or broader stress in the large-cap mining sector could disproportionately impact GDX's performance. GLDM, tracking physical gold, does not have company-specific concentration risk in the same way, though it is concentrated in a single asset class. Investors should consider that GDX's performance is heavily influenced by the financial health and market position of its top few mining companies.

Why is index tracking information unavailable for these funds?

For GDX, the specific index tracked is not available in the provided data, though it is known to track major gold mining indices. Similarly, GLDM's index tracking details are not listed, despite it being a physical gold ETF. This lack of explicit index data in the dataset prevents a direct comparison of their benchmark construction methodologies. Investors should note that while both funds are ETFs, the opacity of specific index criteria in this dataset means one must rely on the fund objectives and holdings to understand their exposure. The absence of this data does not negate their established market roles.

How should a beginner interpret the expense ratio difference?

A 0.51% expense ratio for GDX versus 0.10% for GLDM means the cost drag is significantly higher for the miner ETF. Over a 10-year period, this 0.41% annual difference compounds, reducing net wealth accumulation compared to the cheaper fund, assuming all other factors remain equal. Beginners should view fees as a certain cost that reduces returns, while performance gains are uncertain. The higher fee for GDX is justifiable to many investors because managing a basket of equities is more complex than holding bullion. However, the fee gap is a critical metric for evaluating cost efficiency.

What are the implications of the missing sector weight data?

Neither GDX nor GLDM provides sector weight data in the current dataset. For GDX, sector weights would clarify the exposure to different mining sub-sectors, such as copper-gold producers versus pure gold miners. For GLDM, sector weights are less relevant as it holds physical assets, but the data gap prevents a full structural overview. Investors relying on this comparison page should be aware that the absence of sector breakdowns and specific index tracking information means a complete diversification analysis cannot be performed using this data alone. Further research into fund fact sheets is required for comprehensive analysis.

GDX vs GLDM

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare Gold Miners Market Vectors ETF (GDX) and World Gold Spdr Gold Minishares (GLDM). This page outlines expense ratios, top holdings, dividend yields and tracking methods. GDX holds $28.4bn with a 0.51% fee; GLDM holds $31.7bn with a 0.10% fee. Educational content, not financial advice.

Compare Gold Miners Market Vectors ETF (GDX) and World Gold Spdr Gold Minishares (GLDM). This page outlines expense ratios, top holdings, dividend yields and tracking methods. GDX holds $28.4bn with a...

Fund Snapshot

Key Fund Metrics

GDX

Metric

GLDM

0.51%

Expense Ratio

0.10%

0.66%

Dividend Yield

0.00%

$28.42B

Net Assets

$31.71B

62

Holdings

1

May 22, 2006

Inception Date

Jun 25, 2018

–

Index Tracked

–

Equity Precious Metals

Fund Category

Commodities Focused

GLDM costs about $41.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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GDX vs SGDM

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Investment Analysis

GDX

Pros

Benefiting from a 2006 inception date, this fund offers a long established operational history.
The fund's $28.4 billion net assets provide a very large base to attract institutional investors.
With a 0.66% yield, it generates income from the underlying gold mining company holdings.

Considerations

Its 0.51% expense ratio is substantially higher than that of many standard commodity tracking funds.
Because it tracks precious metal miners, the fund exposes investors to equity market and operational risks.
The 10.91% weight in its top holding creates a concentration risk relative to more diversified funds.

GLDM

Pros

The 0.10% expense ratio is low, making this commodity fund highly cost efficient to hold.
The fund's $31.7 billion net assets indicate a large scale, suggesting robust liquidity for investors.
It is a commodities focused ETF, allowing it to avoid the equity risk of mining shares.

Considerations

With a 0.00% yield, this fund generates no income for the investor through distributions.
Having launched in 2018, it has a much shorter operational history than the older peer fund.
Data on its specific index tracking and top holdings is not available for review.

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About GDX and GLDM

GDX (GDX)

GDX (Market Vectors Gold Miners ETF) gives investors broad exposure to publicly listed companies engaged in gold mining and related activities. As an ETF, it tracks an index of gold miner equities rather than the metal itself, so its performance reflects miners’ share prices, production profiles, costs and sensitivity to gold prices. GDX can offer a convenient way to gain sector exposure, diversification across many miners, and liquidity via an exchange-traded structure, but it also concentrates on a single commodity-linked industry which can be volatile. Factors investors should monitor include the gold price, miners’ operational costs, geopolitical risks in mining regions, and changes in interest rates that influence gold demand. This information is for educational purposes only and is not personal financial advice; values can fall as well as rise and past performance is not a guide to the future. Suitability depends on individual circumstances and risk tolerance.

GLDM (GLDM)

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