Top Gold Miner ETF Trouncing GLD, but Investors Are Selling

For the first time in six years, gold miners are on track to outperform physical gold, and ETF investors are using the rally to lock in gains.

So far this year, the VanEck Gold Miners ETF (GDX) has surged 50%, more than double the 25% return of the SPDR Gold Trust (GLD), which tracks physical bullion. If the outperformance holds through the end of 2025, it would be the first time GDX has outpaced GLD on a calendar-year basis since 2019, when it gained nearly 40% versus GLD’s 18% return.

Investors Take Profits as GDX Gains

The recent rally has lifted GDX, which has as its top holdings Newmont Corp. (NEM), Agnico Eagle Mines Limited (AEM) and Wheaton Precious Metals Corp. (WPM), to its highest price in over 13 years, although the fund remains about 24% below its 2011 peak (or roughly 13% below if you include dividends).

Despite the strong performance, investors have pulled $3.4 billion from the fund this year, suggesting some are taking profits while prices are elevated. Still, GDX remains one of the most popular gold-related ETFs, with $15 billion in assets under management. 

The fund tracks the NYSE Arca Gold Miners Index, which includes large, global gold-mining companies. The sector has long had a mixed reputation, underperforming the metal itself over the past decade despite periods of high gold prices.

Profits for the index’s constituents peaked in 2011, even though gold prices were more than 40% lower than today. That’s partly because costs—including energy, labor and regulatory burdens—have increased over time, and production has been inconsistent.

But gold's rally to record highs this year has pushed margins higher, reigniting interest in the miners. Stronger free cash flow and improving balance sheets are helping sentiment, even if skepticism remains about management discipline and long-term capital allocation in the sector.