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The discovery of a new gold deposit in China could be a catalyst for gold mining stocks. RING ETF, with an AUM of $817.54M and a low expense ratio of 0.39%, offers exposure to global mining stocks, including Chinese holdings. If gold supply increases while demand remains steady, gold prices may trend sideways, potentially closing the performance gap between RING and gold.
iShares MSCI Global Gold Miners ETF (RING) offers lower management fees and higher dividend yields compared to the main peer VanEck Gold Miners ETF (GDX). RING's focus on the top three North American gold miners - Newmont, Agnico Eagle, and Barrick Gold - positions it for potential outperformance. With undervaluation metrics and favorable forward earnings yields, the gold mining sector presents a compelling investment opportunity amidst possible economic disruptions and inflationary pressures in 2025.
Exchange-traded funds (ETFs) have the potential to be an excellent choice both for amateur investors eager to diversify a portfolio but without the experience or time to deal with the regular management of a large number of positions as well as seasoned investors trading actively to capitalize on advanced leveraged strategies. It's no wonder that these easy-to-use investment vehicles have ballooned in popularity in recent years.
Gold and gold-mining stocks have surged, driven by a weaker USD and central bank buying, with RING outperforming other gold ETFs. RING offers diversified global exposure to gold mining companies, trades at a low valuation, and has strong price action, earning a buy rating. Despite seasonal weakness, RING has bucked trends, showing bullish indicators and positive momentum, with a concentrated portfolio in top gold miners.
Gold mining ETf RING hit a new 52-week high.
The iShares MSCI Global Gold Miners ETF offers an attractive option to invest in gold miners that may catch up with gold prices. RING ETF has a concentrated holdings structure relative to its biggest competitor, the GDX ETF. While the expense ratio of the RING ETF is relatively low, investors should be aware of lower liquidity of the RING ETF shares.
I advise all medium and high net-worth investors to have exposure to precious metals as a hedge against inflation and geopolitical and financial dislocation. Today, I will analyze the iShares MSCI Global Gold Miners ETF as a potential inclusion in a well-diversified portfolio to gain exposure to precious metals. The conclusion reached is similar to my past Seeking Alpha articles on "paper gold" assets: buy gold & silver coins instead. I'll explain why in this article.
The iShares MSCI Global Gold Miners ETF invests across a portfolio of gold mining stocks with a focus on active producers with unhedged exposure. RING has outperformed alternative gold mining ETFs in recent years. We like the fund's profile concentrated in high-quality sector leaders that are well-positioned to rally alongside the next breakout higher in gold.
Gold S/D fundamentals are really quite alright at the moment between emerging de-dollarisation and shrinking gold reserves. While the dollar is still very much in use, there is data showing that gold reserves held by central banks are going up while dollar reserves are going down. While there isn't an aggressive bear case to be made against the dollar, in our opinion, there is a positive case to be made around gold.
Gold has performed very well in recent months amid fears of a collapse in the banking system but could turn bearish again. Fears of a financial crisis are easing, while the continued rise in rates to curb inflation is expected to put downward pressure on gold prices, which are currently high.
FAQ
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