There may soon be a fund to track the Amex Gold Miners Index. Van Eck Associates Corp.
has registered an ETF that would track the index's shares of publicly traded gold mining outfits, reports Dow Jones Newswires
Though the Amex Gold Miners Index was established in October 2004, the Market Vectors Trust
, now awaiting approval by regulators, would be the first ETF tying its fortunes to the success of mining companies rather than to the value of gold bullion itself. The Amex index -- the value of which has more than doubled since its introduction -- listed 43 names as of May 4, including Newmont Mining Corp., Barrick Gold Corp., and Goldcorp Inc. The companies are all involved primarily in mining for gold and silver, and have market capitalizations over $100 million.
Van Eck is betting the fund can add another dimension to any further gains chalked up by bullion ETFs like StreetTracks Gold Trust
and iShares Comex Gold Trust
. Van Eck's proposed Market Vectors Trust has a total expense ratio of 55 basis points, versus an average expense ratio of 160 basis points for most precious metals mutual funds. Broker commissions apply to ETFs, however, and not to mutual fund shares.
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