Three High-Risk Gold ETFs for Aggressive Investors: MicroSectors, Direxion, and GraniteShares

Three high-risk, high-reward gold ETFs to consider for a bullish view on gold's price increase: MicroSectors Gold Miners 3X Leveraged ETN (GDXU), Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG), and VelocityShares 3x Inverse Gold ETN (GLDD). These funds offer leveraged exposure to gold mining firms and the price of gold, but come with high risks and high expense ratios.

Gold's recent surge in price, driven by geopolitical tensions, inflation fears, and central bank buying, has drawn investors' attention to leveraged gold ETFs. These funds offer amplified exposure to gold mining firms and the price of gold, but come with significant risks and high expense ratios. Here are three high-risk, high-reward gold ETFs to consider for a bullish view on gold's price increase: MicroSectors Gold Miners 3X Leveraged ETN (GDXU), Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG), and VelocityShares 3x Inverse Gold ETN (GLDD).

MicroSectors Gold Miners 3X Leveraged ETN (GDXU)

GDXU is designed to deliver three times the daily performance of the NYSE Arca Gold Miners Index. This ETN invests in a sophisticated set of derivative securities and swap agreements that amplify the performance of the index. It is ideal for aggressive investors seeking to leverage the price movements of gold miners. However, it is important to note that GDXU has an expense ratio of 1.25% and carries the risk of significant daily losses.

Direxion Daily Junior Gold Miners Index Bull 2X Shares (JNUG)

JNUG seeks to deliver twice the daily performance of the MVIS Junior Gold Miners Index. The fund invests in junior gold mining companies, which are often more volatile than their senior counterparts. JNUG offers high potential returns but also comes with high risks. It has an expense ratio of 1.05% and is suitable for investors who are comfortable with the volatility of junior gold miners.

VelocityShares 3x Inverse Gold ETN (GLDD)

GLDD is a unique ETN that aims to deliver three times the inverse performance of the daily gold price. It is designed for investors who are bearish on gold and want to profit from a decline in the price. However, GLDD has an expense ratio of 0.95% and carries the risk of significant daily losses. It is important to note that inverse ETNs can be complex and may not perform as expected due to the effects of compounding and the "volatility risk premium."

Investors should carefully consider the risks and costs associated with these high-risk, high-reward gold ETFs. Leveraged ETFs can be volatile and may not perform as expected, especially over longer periods. It is essential to conduct thorough research and consult with a financial advisor before making investment decisions.

References

[1] https://money.usnews.com/investing/articles/best-gold-etfs-to-hedge-volatility
[2] https://www.caixinglobal.com/2020-09-04/chinas-zijin-one-step-closer-to-losing-1-billion-a-year-gold-mine-101601013.html