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Barrick's Reversal Helps Gold ETF's Fortunes

By Don Dion

 About this article:
 The prospects for Market Vectors Gold Miners are brighter than ever, now that No. 1 holding Barrick Gold has changed from a headwind into a tailwind. Gold broke through the $1,100 level today, and more aggressive ETF investors will likely bypass the bullion ETFs, such as iShares Comex Gold and turn their sights on Market Vectors Gold Miners. One important development every investor in this index should be aware of is the un-hedging of Barrick. At 14.66% of assets, Barrick holds major sway in this ETF and had been a long-term underperformer and a drag on GDX's returns because of a massive hedge on gold prices. Barrick's defensive position not only meant the company could not fully participate in gold's rise, it was actually losing billions as the hedges sank underwater and put the company in financial trouble. On Sept. 8, with...

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