VanEck Gold Miners ETF and Sprott Gold Miners ETF both offer exposure to gold mining stocks, but differ in fees, yield, and geographic focus-key factors for investors weighing cost, risk, and long-term performance
Investors looking to participate in the gold mining sector without picking individual stocks often turn to exchange-traded funds (ETFs) that track a basket of mining companies. Two of the most prominent options are the VanEck Gold Miners ETF (GDX) and the Sprott Gold Miners ETF (SGDM). While both funds provide access to gold miners, they differ in size, cost, geographic exposure, and historical returns-factors that can influence long-term outcomes for shareholders.
GDX, managed by VanEck, is the larger of the two, with $31 billion in assets under management as of August 2026. SGDM, from Sprott, is smaller at $700 million but offers a lower expense ratio and a higher dividend yield. Both funds are concentrated in the basic materials sector, but their holdings and strategies diverge in ways that may matter for investors with specific goals or risk tolerances.
Comparing Cost and Size
One of the first distinctions between these ETFs is their scale. GDX's $31 billion asset base makes it one of the largest gold mining funds globally, which can translate to greater liquidity and tighter bid-ask spreads for investors. SGDM, with $700 million in assets, is much smaller but still sizable enough for most retail investors.
Cost is another differentiator. SGDM charges an annual expense ratio of 0.46%, slightly undercutting GDX's 0.51%. While the difference may seem minor, lower fees can add up over time, especially for long-term investors. SGDM also offers a higher trailing 12-month dividend yield of 1.0%, compared to GDX's 0.6%. For investors seeking income, this could be a meaningful advantage, though dividend yields in the gold mining sector tend to fluctuate with commodity prices and company profitability.
Geographic Focus and Holdings
GDX tracks the MarketVector Global Gold Miners Index, providing exposure to a broad range of gold mining companies worldwide. Its largest holdings include Agnico Eagle Mines Ltd (10.9%), Newmont Corp (10.7%), and Barrick Mining Corp (7.5%), with a total of 59 securities in the portfolio. This global approach can help diversify country-specific risks but may also introduce currency fluctuations and regulatory differences.
SGDM, by contrast, focuses on gold producers based in the United States and Canada, with all holdings listed on North American exchanges. Its top positions are Agnico Eagle Mines Ltd (9.6%), Barrick Mining Corp (7.4%), and Newmont Corp (7.4%), and the fund holds 48 securities. This North American tilt may appeal to investors who prefer to avoid emerging market exposure or who want to limit foreign exchange risk. Both funds are 100% invested in the basic materials sector, and both pay dividends, though the amounts and yields differ.
Performance, Risk, and Practical Considerations
Over the past year, GDX returned 72.5% while SGDM delivered 70.8%, reflecting the strong rally in gold prices since early 2024. Over longer periods, GDX has outperformed SGDM by a modest margin, with annualized returns of 34.8%, 17.9%, and 10.4% over the past 3, 5, and 10 years, respectively. Both funds have experienced significant drawdowns, with GDX's maximum five-year drawdown at -46.5% and SGDM's at -45.0%, underscoring the volatility inherent in gold mining stocks.
For investors, the choice between these ETFs may come down to priorities. Those seeking the broadest global exposure and the liquidity of a large fund may gravitate toward GDX. Investors focused on lower fees, higher yield, or a North American portfolio may prefer SGDM. It's also worth noting that gold mining stocks are not a pure play on gold prices; while they tend to move in the same direction as gold, company-specific factors, operating costs, and management decisions can all affect returns. Both funds have declined year-to-date despite gold's rally, highlighting the sector's complexity.
According to data from the funds' issuers, GDX paid $0.63 per share in dividends over the trailing 12 months, while SGDM paid $0.73 per share. As of August 20, 2026, GDX traded at $99.85 per share and SGDM at $83.20. Investors should consider not only recent performance but also the underlying cost structure, sector volatility, and their own risk tolerance before choosing an ETF in this space.
Gold mining ETFs like GDX and SGDM offer a way to gain diversified exposure to the gold sector without the need to buy and store physical gold. These funds can amplify gains during gold bull markets, as miners' profits often rise faster than the metal's price due to operating leverage. However, they can also magnify losses when gold prices fall, since mining costs are relatively fixed and margins can shrink quickly. Investors should weigh these dynamics carefully, especially if using gold miners as a hedge against inflation or market volatility. As with any sector ETF, diversification, cost, and long-term strategy remain key considerations.
