The Direxion Daily Junior Gold Miners Index (JNUG) is tied to the performance of the MVIS Global Junior Gold Miners Index, which tracks the performance of foreign and domestic micro-, small- and mid-cap gold and silver mining companies. But JNUG adds a layer to the typical index ETF approach, seeking daily investment results that are three times that of the underlying index. It accomplishes this through the use of leverage.

JNUG’s top holdings include Kinross Gold (6.12% weighting), Evolution Mining (5.59%), Northern Star Resources (4.91%), Pan American (4.27%), Gold Fields (4.14%), Comp De Minas (4.05%), Yamana Gold (3.88%), Sibanye Gold (3.39%), B2Gold (3.03%), and Detour Gold (2.87%).

JNUG’s expense ratio is 1.17% and it currently has about $935 million in assets under management.

Rationale

The most direct way to gain exposure to the holdings in JNUG is to buy its listed shares. But there are a number of good reasons for investors to reconsider that approach. JNUG is just one of a pair of ETFs that are tracking the gold miners market. JNUG is the bullish (upside) listing, while JDST is the bearish (downside) short version. Both intend to deliver positive results but are optimized for opposite market conditions. This said, rather than buying JNUG shares themselves, investors interested in gaining exposure to the gold mining market as a whole might consider buying funds that provide exposure to its top-weighted companies. After all, the return drivers that will benefit JNUG might also benefit other funds in the sector.

Investing in JNUG

A search on Magnifi suggests that investors can gain access to the gold miners of the world via a number of different funds and other ETFs, including those shown below.

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