What is the main difference between GDXU and NUGT?

GDXU provides 3x leverage on gold miners via an ETN, while NUGT offers 2x leverage as an ETF. This means GDXU amplifies daily movements more aggressively but carries credit risk from Bank of Montreal, whereas NUGT has higher structural transparency but lower leverage.

How does leverage affect daily returns?

Leverage magnifies both gains and losses based on daily index movements. For example, if gold miners rise 1%, a 2x fund aims for 2%, while a 3x fund targets 3%. However, this amplification increases volatility and potential value erosion over time due to compounding effects.

Why are leveraged funds unsuitable for long-term holding?

Leveraged funds reset their exposure daily, leading to significant volatility drag over time. This compounding effect causes performance to diverge from long-term index trends, often resulting in substantial losses even if the underlying index rises over months or years.

How do the expense ratios compare between GDXU and NUGT?

GDXU has an expense ratio of 0.95%, whereas NUGT charges 1.13%, a difference of 0.18 percentage points. Over time, higher fees can reduce net returns, making GDXU slightly cheaper to hold. However, leverage decay is a far more significant factor than these fee differences.

Which fund provides income through dividends?

NUGT has a dividend yield of 0.41%, offering modest income alongside capital growth. In contrast, GDXU yields 0.00%, providing no income to investors. This difference may appeal to those seeking regular cash flows, though leveraged funds typically prioritise capital appreciation.

How do the fund structures differ in terms of risk?

GDXU is an ETN relying on Bank of Montreal's creditworthiness without holding physical assets or a standard index, carrying counterparty risk. NUGT is a traditional ETF holding derivatives and shares, eliminating issuer credit risk but facing potential tracking errors from its high top-10 concentration.

What does each fund track, and how do their exposures differ?

GDXU is a 3x leveraged ETN, while NUGT is a 2x leveraged ETF targeting gold miners. Neither provides direct equity exposure; instead, they offer amplified daily returns on the sector. GDXU's structure involves derivatives, whereas NUGT includes ETFs like GDX in its portfolio.

How concentrated are the top holdings in NUGT?

NUGT's top holding is GDX at 23.59%, indicating significant concentration risk in a single entity. GDXU's specific holdings are not disclosed as it is an ETN tracking a synthetic basket. This contrast suggests NUGT has more tangible but concentrated asset exposure.

Are there overlapping top-10 holdings between GDXU and NUGT?

There are no shared top-10 holdings between the two funds, as GDXU's holdings are undisclosed (ETN structure) and NUGT's top holding is GDX. This indicates a lack of transparency in GDXU's composition and a distinct difference in their operational mechanics.

Which fund has been operating longer?

NUGT launched in December 2010, giving it over fifteen years of operational history. GDXU began trading in December 2020. While NUGT has more historical data for performance analysis, both are relatively new compared to non-leveraged funds and remain unsuitable for long-term investing.

GDXU vs NUGT

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

Compare GDXU, a 3x leveraged gold miners ETN, with NUGT, Direxion's 2x bull ETF. We review their fees, holdings, dividends, and market tracking to help you understand the differences. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

GDXU

Metric

NUGT

0.95%

Expense Ratio

1.13%

0.00%

Dividend Yield

0.41%

$1.27B

Net Assets

$1.18B

Holdings

Dec 7, 2020

Inception Date

Dec 8, 2010

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Index Tracked

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Trading--Leveraged Commodities

Fund Category

Trading--Leveraged Equity

GDXU costs about $18.00 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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Investment Analysis

GDXU

Pros

MicroSectors Gold Miners 3X Leveraged ETN provides triple leverage for aggressive short-term trading of gold miners.
The fund carries a relatively modest expense ratio of 0.95% compared to the peer group.
Leveraged ETN structure offers potential tax advantages by avoiding annual distributions and capital gains tax on underlying swaps.

Considerations

Triple leverage amplifies losses and accelerates decay, making the fund highly unsuitable for long-term buy-and-hold investing.
The absence of dividends yields no income for the investor, with a dividend yield of 0.00%.
The fund structure is an ETN, meaning it relies on the creditworthiness of Bank of Montreal and lacks a fund index.

NUGT

Pros

Fund offers exposure to gold miners with double leverage for those seeking an amplified daily return.
It was launched in 2010 and has accumulated over fifteen years of operational history in the leveraged trading category.
The fund maintains a dividend yield of 0.41%, providing some basic income alongside its capital growth objective.

Considerations

Fund incurs a high expense ratio of 1.13%, significantly eroding returns for leveraged traders.
As a 2X daily leveraged ETF, the fund suffers from substantial volatility drag, leading to potential long-term value erosion.
High concentration risk exists in the top holding, GDX, which accounts for 23.59% of the fund's assets.

About GDXU and NUGT

GDXU (GDXU)

The Bank of Montreal MicroSectors Gold Miners 3X Leveraged ETN (GDXU) is an Exchange Traded Note designed to provide three times the daily performance of the underlying gold mining sector. Unlike traditional ETFs, this product is an unsecured debt obligation of Bank of Montreal, meaning it does not hold physical assets like gold or mining stocks directly. Investors are exposed to the credit risk of the issuer, alongside market volatility. With a leverage factor of 3X, gains can be amplified significantly, but losses can also escalate rapidly, potentially exceeding the original investment in short timeframes. The fund has an expense ratio of 0.95% and currently holds two components within its portfolio structure. It does not pay dividends, focusing instead on capital appreciation linked to sector movements. Due to its leveraged nature and reset mechanisms, this instrument is generally suited for experienced traders with a clear understanding of how compounding effects impact long-term returns versus daily rebalancing.

NUGT (NUGT)

The Direxion Daily Gold Miners Index Bull 2X ETF (NUGT) is a leveraged exchange-traded fund designed to provide twice the daily performance of gold mining stocks. It targets an index composed of companies involved in the gold mining sector, offering amplified exposure to movements in gold prices and mining company valuations. As a leveraged product, NUGT uses financial derivatives and debt to achieve its 2x objective, which can lead to significant volatility. Investors should understand that leveraged ETFs are typically intended for short-term trading rather than long-term holding due to the effects of compounding, which may cause returns to deviate from the underlying index over longer periods. The fund has an expense ratio of 1.13% and holds approximately 23 positions. While it offers potential for high returns in rising markets, it also magnifies losses in declining markets, making it suitable for experienced investors who can monitor positions closely.

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GDXU vs NUGT

Fund Snapshot

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Investment Analysis

GDXU

Pros

Considerations

NUGT

Pros

Considerations

About GDXU and NUGT

Buy GDXU or NUGT in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Frequently asked questions

What is the main difference between GDXU and NUGT?

How does leverage affect daily returns?

Why are leveraged funds unsuitable for long-term holding?

How do the expense ratios compare between GDXU and NUGT?

Which fund provides income through dividends?

How do the fund structures differ in terms of risk?

What does each fund track, and how do their exposures differ?

How concentrated are the top holdings in NUGT?

Are there overlapping top-10 holdings between GDXU and NUGT?

Which fund has been operating longer?

Fund Snapshot

About GDXU and NUGT

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GDXU vs JNUG

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