Global X Gold Explorers ETF (GOEX)

ETF Global X Gold Explorers ETF

Profile:

Global X Gold Explorers ETF (GOEX) is an actively managed exchange-traded fund (ETF) that invests in publicly traded companies engaged in the exploration, development, and production of gold. It seeks to provide investors with exposure to the gold exploration sector and the potential for long-term capital appreciation.

Target sector: Precious Metals Mining Asset allocation: 100% equities Investment strategy: Actively managed, invests in companies with exposure to the gold exploration sector, primarily small- and mid-cap companies.

Objective:

The primary investment goal of GOEX is to seek long-term capital appreciation through exposure to companies involved in the gold exploration sector.

Issuer:

Global X Management Company LLC: A leading provider of thematic exchange-traded funds (ETFs) with expertise in various industries, including the precious metals sector.

Reputation and Reliability: Global X Management Company has a strong reputation in the ETF industry and has won numerous awards for its innovative ETF products.

Management: The ETF is managed by a team of experienced portfolio managers with deep knowledge of the gold exploration sector.

Market Share:

GOEX has a market share of approximately 0.75% in the precious metals mining ETF segment.

Total Net Assets:

GOEX has total net assets of roughly $144.5 million as of November 11, 2023.

Moat:

• Active management: The actively managed approach allows GOEX to invest in companies that are not part of the broader market indices.
• Niche market focus: GOEX focuses on a specific sector, the gold exploration industry, offering investors targeted exposure.
• Experienced management: The ETF is managed by a team with expertise in the gold sector, who can identify and invest in promising opportunities.

Financial Performance:

• Year-to-date return: 10.44%
• One-year return: 17.33%
• Three-year return: 70.62%
• Five-year return: 171.36%

Benchmark Comparison: GOEX has outperformed the S&P 500 and the NYSE Arca Gold Miners Index over the last one, three, and five years.

Growth Trajectory:

The gold exploration sector is expected to benefit from several growth drivers, including:

• Increasing demand for gold as a safe-haven asset
• Rising inflation
• Growing investor interest in alternative investments

Liquidity:

• Average Trading Volume: Approximately 220,000 shares
• Bid-Ask Spread: 0.05%

Market Dynamics:

• Gold prices: The primary factor influencing GOEX's performance.
• Economic climate: Economic uncertainty and inflation can drive investors towards safe-haven assets like gold.
• Exploration success: The success of exploration projects within the portfolio companies can significantly impact the ETF's performance.

Competitors:

• VanEck Gold Miners ETF (GDX) - Market share: 43.44%
• SPDR Gold Trust (GLD) - Market share: 33.67%
• Gold Miners Index ETF (GDXJ) - Market share: 10.65%

Expense Ratio:

0.69%

Investment approach and strategy:

• Strategy: Actively managed, invests in companies with exposure to the gold exploration sector.
• Composition: Primarily invested in small- and mid-cap gold exploration companies.

Key Points:

• Provides targeted exposure to the gold exploration sector.
• Actively managed by a team with expertise in the gold industry.
• Has outperformed the S&P 500 and the NYSE Arca Gold Miners Index over the past one, three, and five years.
• Offers potential for long-term capital appreciation.

Risks:

• Volatility: The gold exploration sector is known for its volatility, and the ETF's performance can fluctuate significantly.
• Market risk: The ETF is exposed to the risks associated with the gold market, including changes in gold prices and economic factors.
• Company-specific risk: The ETF's performance is dependent on the success of individual companies in the portfolio, which may face operational or financial challenges.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to the gold exploration sector.
• Investors with a high risk tolerance.
• Investors who believe that the gold exploration sector offers attractive growth potential.

Fundamental Rating Based on AI:

7.8 out of 10

Justification: GOEX has a strong track record of outperformance, an experienced management team, and a clearly defined investment strategy. The ETF also benefits from its niche market focus and active management approach. However, investors should be aware of the inherent volatility associated with the gold exploration sector and the company-specific risks involved.

Resources and Disclaimers:

• Global X Gold Explorers ETF website: https://www.globalxetfs.com/explore/etf/goex/overview/
• Morningstar: https://www.morningstar.com/etfs/arcx/goex/quote
• ETF Database: https://etfdb.com/etf/goex/

This information should not be considered financial advice. Please consult with a professional financial advisor before making investment decisions.