What is the fundamental difference between NUGT and UGL?

NUGT (Direxion Daily Gold Miners Bull 2X) provides daily leveraged exposure to gold mining equities, tracking an index of companies that extract gold. In contrast, UGL (ProShares Ultra Gold) offers daily leveraged exposure to the price of physical gold bullion through commodity futures. While both are leveraged ETFs designed to amplify daily returns by a factor of two, their underlying assets differ significantly: NUGT is sensitive to corporate performance and stock market dynamics within the mining sector, whereas UGL tracks the spot price movements of gold itself.

How does leverage impact these ETFs compared to standard funds?

Leverage in ETFs like NUGT and UGL amplifies daily price movements. NUGT seeks 200% of the daily change in its target mining equity index, while UGL targets 200% of the daily change in gold prices. This means gains are magnified, but so are losses. Because these funds reset daily, their long-term performance may not exactly mirror 200% of the underlying asset's cumulative return due to compounding effects. They are primarily intended for short-term trading rather than buy-and-hold strategies, as prolonged holding periods can lead to significant drift from the intended multiple.

Are the top holdings of NUGT and UGL similar?

No, the top holdings of NUGT and UGL are not similar, reflecting their distinct strategies. NUGT’s largest holding is GDX at 23.59%, which is another ETF tracking gold miners, indicating its focus on mining equity indices. UGL’s top holding is IQMM at 18.34%, likely a money market or commodity-related vehicle supporting its gold price exposure. The data confirms there are no shared top-10 holdings between the two funds. This lack of overlap underscores that while both relate to gold, one is an equity-focused fund and the other is a commodity-focused fund.

How do the expense ratios of NUGT and UGL compare?

NUGT has an expense ratio of 1.13%, while UGL has an expense ratio of 0.95%. This represents a difference of 0.18 percentage points. For investors, the expense ratio is an annual fee deducted from the fund's assets. While the difference is relatively small, lower fees generally improve net returns over time, assuming other factors remain equal. However, in leveraged ETFs, trading costs and the compounding effect of daily rebalancing often have a more significant impact on final returns than the difference in management fees alone. It is important to consider the total cost of ownership including bid-ask spreads and transaction costs.

What are the dividend yields for these funds?

NUGT reports a dividend yield of 0.41%, whereas UGL has a dividend yield of 0.00%. This indicates that NUGT distributes some income, likely stemming from the underlying mining companies it invests in or interest on cash balances. UGL, being a commodity-focused fund tracking gold prices, typically does not generate income through dividends, as gold itself does not pay interest or dividends. Investors focusing on income generation might find NUGT more suitable, though leveraged ETFs are rarely designed for steady income; the primary objective for both funds remains capital appreciation based on price movements.

Which fund has larger net assets?

NUGT has net assets of $1.2 billion, compared to UGL’s $886 million. A larger asset base in an ETF can sometimes imply higher liquidity and easier trading for investors, as market makers may have more capital to facilitate transactions. However, UGL remains a substantial fund with nearly a billion dollars in assets, which is generally sufficient for most retail and institutional trading needs. The difference in size does not necessarily indicate which fund is better performing, but it can reflect broader investor interest or the duration since inception. Both funds are established vehicles with significant capitalisation.

How long have these funds been in operation?

UGL was established on December 1, 2008, giving it a longer operating history compared to NUGT, which was launched on December 8, 2010. Investors can use historical performance data from UGL to assess how it has behaved over multiple market cycles, including periods of high volatility in the gold market. NUGT’s shorter track record means there is less historical data available for analysis, but it still provides several years of performance during significant swings in the mining sector. The inception dates are factual data points used to evaluate the maturity and experience of the fund managers.

What market factors influence NUGT's performance?

NUGT’s performance is driven by the price movements of gold mining stocks. Factors such as the spot price of gold, operational costs of miners, management efficiency, and broader equity market sentiment influence its returns. Since it tracks an index of miners, it is also subject to company-specific risks like regulatory changes, labour strikes, or geopolitical issues in mining regions. Gold miners can have a high beta relative to gold, meaning they often move more dramatically than the metal itself. Consequently, NUGT can experience significant volatility due to its double leverage applied to an already volatile equity sector.

What drives the price of UGL?

UGL’s price is primarily driven by the spot price of gold bullion. Macroeconomic factors such as inflation expectations, currency strength (particularly the US dollar), interest rates, and global geopolitical uncertainty heavily influence gold prices. Since UGL uses financial instruments like futures and swaps to achieve its 2x daily exposure, it also faces risks related to the structure of the gold futures market, such as contango or backwardation, which can affect roll yields. Unlike mining equities, UGL is not influenced by corporate earnings or operational risks of mining companies, making it a purer bet on the metal's price action.

How does volatility differ between the two funds?

Both NUGT and UGL are highly volatile due to their leveraged nature. However, NUGT tracks gold mining equities, which historically exhibit higher volatility than the spot price of gold itself due to operational leverage and market sentiment. UGL tracks the commodity price, which is volatile but often less erratic than mining stocks. Consequently, NUGT may experience sharper daily swings and larger potential drawdowns during market downturns compared to UGL. Investors should review historical standard deviation and maximum drawdown metrics for each fund to understand the risk profile, as the equity-based leverage in NUGT typically amplifies both upward and downward trends more aggressively than the commodity-based UGL.

What is the primary difference in their fund categories?

NUGT is classified as 'Trading--Leveraged Equity', indicating it invests in stocks. UGL is classified as 'Trading--Leveraged Commodities', indicating it provides exposure to physical commodities like gold. This categorisation reflects the underlying assets and risk drivers. Equity funds are subject to stock market risks, corporate governance issues, and sector-specific trends within the mining industry. Commodity funds are exposed to supply and demand dynamics of the physical resource, currency fluctuations, and futures market structures. Understanding this distinction is critical for portfolio construction, as gold miners and gold bullion do not always move in perfect correlation and have different sensitivities to economic conditions.

Are these funds suitable for long-term investing?

Generally, leveraged ETFs like NUGT and UGL are designed for short-term trading rather than long-term buy-and-hold strategies. Due to daily rebalancing, their returns do not compound in the same way as unleveraged funds over extended periods. In volatile or sideways markets, this can lead to significant value erosion, even if the underlying asset eventually rises. Long-term investors seeking exposure to gold or gold miners typically use non-leveraged ETFs. While these funds can be used for tactical allocations over shorter timeframes, holding them for months or years exposes investors to compounding risks that may result in returns diverging significantly from the performance of the underlying asset.

NUGT vs UGL

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

This page compares Direxion Daily Gold Miners Bull 2X and ProShares Ultra Gold. NUGT, with a 1.13% expense ratio, seeks daily leveraged returns from gold miners, while UGL, at 0.95%, targets ultra performance linked to gold prices. Review fees, holdings, dividends, and how each fund tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

NUGT

Metric

UGL

1.13%

Expense Ratio

0.95%

0.41%

Dividend Yield

0.00%

$1.18B

Net Assets

$886.47M

Holdings

Dec 8, 2010

Inception Date

Dec 1, 2008

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Index Tracked

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Trading--Leveraged Equity

Fund Category

Trading--Leveraged Commodities

UGL 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.

Investment Analysis

NUGT

Pros

Investors seeking high sensitivity to gold mining equities benefit from the fund's daily leveraged exposure.
A modest dividend yield of 0.41 per cent offers limited income potential alongside capital fluctuations.
Net assets stand at $1.2 billion, indicating substantial investor interest and operational stability.

Considerations

An expense ratio of 1.13 per cent is relatively high for passive investment vehicles.
Leveraged structures inherently increase risk and may cause severe losses during volatile market conditions.
The fund tracks a gold miners index rather than direct physical gold holdings.

UGL

Pros

Provides direct leveraged exposure to the price of gold bullion through a commodity-focused vehicle.
Operating expenses are set at 0.95 per cent, slightly lower than the peer fund.
Established in December 2008, the fund has a long operating history for investors to assess.

Considerations

The fund distributes no dividends, offering a 0.00 per cent yield to shareholders.
Assets under management total $886 million, smaller than the compared mining equity fund.
Leverage amplifies both gains and losses, making it unsuitable for long-term buy-and-hold strategies.

About NUGT and UGL

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.

UGL (UGL)

ProShares Ultra Gold (UGL) is an exchange-traded fund designed to provide investors with leveraged exposure to the price of gold. Specifically, it aims to deliver daily returns that are twice the performance of the daily percentage change in gold bullion prices. Launched in December 2008, this fund allows traders to amplify their potential gains from upward movements in the gold market. However, this leverage works both ways, meaning losses can be similarly magnified if the price of gold falls. UGL is generally considered a trading tool rather than a long-term investment, as the effects of compounding can cause its performance to diverge from the underlying gold price over longer holding periods. With net assets of USD 886 million and an expense ratio of 0.95%, it remains a popular choice for those seeking short-term directional bets on gold.

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NUGT vs UGL

Fund Snapshot

Investment Analysis

NUGT

Pros

Considerations

UGL

Pros

Considerations

About NUGT and UGL

Buy NUGT or UGL in Nemo

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6% Interest on Cash

Frequently asked questions

What is the fundamental difference between NUGT and UGL?

How does leverage impact these ETFs compared to standard funds?

Are the top holdings of NUGT and UGL similar?

How do the expense ratios of NUGT and UGL compare?

What are the dividend yields for these funds?

Which fund has larger net assets?

How long have these funds been in operation?

What market factors influence NUGT's performance?

What drives the price of UGL?

How does volatility differ between the two funds?

What is the primary difference in their fund categories?

Are these funds suitable for long-term investing?

Fund Snapshot

About NUGT and UGL