GDX vs. GLD: How Miners Are Doubling Gold’s Price in 2025

Gold-mining stocks are on a tear in 2025. The performance of the VanEck Gold Miners ETF (GDX) has doubled that of the spot price of gold, as measured by the SPDR Gold Shares (GLD).  

A combination of escalating tariffs, economic slowdown concerns and heightened geopolitical uncertainty is driving investors toward safe-haven assets, with gold as a primary beneficiary.  

However, instead of just buying physical gold, many investors are turning to gold-mining stocks, which tend to provide leverage to the price of gold and offer greater upside potential during bullish periods.  

One of the most popular ways to gain exposure to this sector is through the $14.5 billion GDX ETF. Below, we explore how GDX works, why gold miners are leading in performance this year, and the outlook for gold and gold-mining stocks for the remainder of 2025. 

How the GDX ETF Works and Its Investment Strategy

GDX is one of the most widely traded gold-mining ETFs, designed to track the NYSE Arca Gold Miners Index. The fund invests in a diversified basket of companies involved in gold mining, providing exposure to both established producers and smaller growth-focused miners.  

Some of the top holdings in GDX include Newmont Corp. (NEM), Barrick Gold Corp. (GOLD) and Wheaton Precious Metals Corp. (WPM), which are among the largest gold producers globally. 

GDX operates as a passive index fund, meaning it mirrors the performance of its underlying index rather than being actively managed. This allows investors to gain broad exposure to the gold-mining industry with a single investment while benefiting from diversification across multiple companies. 

GDX vs. GLD: Comparing Gold Miners to Spot Gold ETFs

Data from etf.com as of March 27, 2025. Past performance is no guarantee of future results.

Investors looking to gain exposure to either a gold-mining ETF or a spot gold ETF often choose between the two largest ETFs in their respective categories: GDX and GLD. While both provide exposure to gold, they do so in very different ways.

• GDX invests in gold-mining companies, making it an indirect play on gold prices. It offers greater upside potential but also comes with higher volatility, as mining stocks are affected by operational risks, geopolitical factors and company-specific developments. 
• GLD directly tracks the price of physical gold. It provides a more stable investment option for those looking to hedge against inflation or economic uncertainty without exposure to individual mining companies. 

See also: ETF Spotlight: SIL Surges as Miners Outshine Silver 

Using the ETF Comparison Tool

Comparing ETFs is essential for identifying the right investment that aligns with your risk tolerance, time horizon and financial goals. The ETF Comparison Tool at etf.com eliminates guesswork by offering a clear, side-by-side breakdown of critical metrics.

For example, easily compare performance, costs, holdings and other metrics for up to three ETFs in a few simple clicks.

Data from etf.com's ETF Comparison Tool. Try it today, or check out our suite of other ETF analysis tools here.

Why Gold-Mining Stocks Are Outperforming Gold in 2025

While the price of gold has seen strong gains this year, gold-mining stocks have surged even more. There are several key reasons for this outperformance.

1. Leverage to Gold Prices 

Gold miners typically have fixed costs, meaning that as gold prices rise, their profits can increase exponentially, leading to higher stock valuations. 

2. Higher Investor Interest in Equities Over Commodities 

Many investors prefer owning mining stocks over physical gold because they can generate dividends and benefit from corporate growth strategies. 

3. Supply Chain and Cost Efficiency Improvements 

Major gold-mining companies have been optimizing their operations, cutting costs and increasing efficiency, which has improved profit margins even beyond gold price gains. 

4. Tariff Impact on Global Trade

The new round of tariffs has disrupted supply chains and raised concerns about economic slowdowns, prompting investors to shift toward gold and mining stocks as defensive plays. 

5. Mergers and Acquisitions

Over the past year, there has been an uptick in merger and acquisition (M&A) activity in the gold-mining sector, with large players acquiring smaller firms to consolidate resources and improve output. 

Outlook for Gold and Gold Miners in 2025

The outlook for gold and gold miners for the remainder of 2025 remains positive but is not without risks. If economic conditions continue to weaken and geopolitical uncertainty remains high, demand for gold and gold-related assets is likely to persist. 

However, one key risk factor is the potential for interest rate changes. If global central banks decide to halt or reverse rate cuts in response to stubborn inflation, it could dampen gold’s momentum and put pressure on gold-mining stocks. Additionally, should global trade tensions ease, investors may shift back to riskier assets, potentially reducing demand for safe havens like gold. 

Final Thoughts: Balancing Opportunity with Volatility

While the GDX ETF has been a strong performer in 2025, investors should be aware of the inherent volatility in both gold and mining stocks. These stocks tend to be more cyclical than the broader market, meaning their performance is heavily tied to gold prices, macroeconomic trends and geopolitical risks.  

As with any investment, conducting thorough research and maintaining a well-diversified portfolio is crucial for navigating the uncertainties of the market.

For further reading: 10 Best ETFs for Stagflation