Is GDX a good ETF?
GDX is the VanEck Gold Miners ETF from VanEck. It tracks the NYSE Arca Gold Miners Index. We classify it under Intl, Commodities, and Thematic. With about $1.14 billion in assets it is a large, highly liquid fund. Listed on the ASX since 2015-07-01 (about 11 years ago).
On a total-return basis, GDX has delivered 11.43% a year over 10 years (ranked 31st of 108 ETFs we track), 19.43% a year over 5 years (ranked 4th of 188 ETFs we track), 34.08% a year over 3 years (ranked 6th of 226 ETFs we track), and 35.83% a year over 1 year (ranked 22nd of 308 ETFs we track). Its strongest showing is over 5 years, where it sits in the top 2% of all ETFs we track.
The management fee of 0.53% is on the higher side. For comparison, similar ETFs average around 0.46%. If cost is your priority, PMGOLD (0.15%), QRE (0.34%), and GOLD (0.4%) cover similar ground for less. It pays a high 19.66% yield — generous income, but check it isn't a sign of a narrow or higher-risk portfolio. Bear in mind distributions are taxed each year at your marginal rate, so a high yield is less tax-efficient for higher earners and during the accumulation phase.
Over the past 10 years its volatility has been high (annualised standard deviation around 29.22%), meaning a bumpy ride with deep drawdowns. Its 10-year Sharpe ratio of 0.44 is weak — that's the return it has earned per unit of risk taken (higher is better).
Portfolio turnover is modest at about 25% a year — it reshuffles a meaningful but still limited part of the portfolio annually, which keeps the tax and trading drag manageable.
Strengths
- Top-2% returns over 5 years (4th of 188 ETFs we track).
- High 19.66% income yield — good for investors who want regular cash flow.
Things to watch
- Pricier than similar ETFs, which average around 0.46%.
- Cheaper alternatives exist: PMGOLD, QRE, and GOLD.
- That income is taxed yearly at your marginal rate, so it's less efficient for higher earners.
- Weak risk-adjusted returns (10-year Sharpe ratio 0.44).
- High volatility (29.22% over 10 years) — expect deep drawdowns.
- Highly concentrated single-theme bet — keep the position size small.
What GDX's categories mean for you
How each category this ETF belongs to tends to behave across market cycles.
Global and international shares from outside Australia — broadening you into thousands of companies and the sectors (tech, healthcare) the local market lacks.
- Market regime
- Essential diversification away from the bank-and-resources-heavy ASX. Unhedged versions carry currency risk; hedged versions remove it at a small cost.
- In a portfolio
- A core holding for almost every long-term Australian portfolio.
Exposure to physical commodities (gold, silver, oil) or the companies that produce them. A portfolio diversifier and a classic inflation hedge.
- Market regime
- Gold in particular tends to shine during crises, high inflation and falling real interest rates. Commodities generate no yield or earnings and can trend sideways for years.
- In a portfolio
- A tactical or satellite allocation for diversification and inflation protection — not a long-term compounding engine.
A concentrated bet on a single trend — AI, battery tech, cybersecurity, robotics and the like. High conviction, high concentration, and often high fees.
- Market regime
- Frequently launched after a theme is already hot, which has historically been a poor entry point. Expect very large swings in both directions.
- In a portfolio
- A small satellite position at most. Treat it as a speculative tilt, never as a core holding.
General information only, generated from the fund's published data — not personal financial advice. Past performance is not a reliable indicator of future returns. Consider your own circumstances or seek licensed advice before investing.