Comparison of Sprott Gold Miners ETF and SPDR Gold ETF
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy NEM?
Source: Fool
- Investment Structure Differences: The Sprott Gold Miners ETF (SGDM) focuses on 40 gold mining companies, while the SPDR Gold ETF (GLD) directly tracks the price of physical gold, resulting in significant differences in risk, returns, and trading characteristics that affect investor choices.
- Costs and Returns: SGDM has an expense ratio of 0.50% compared to GLD's 0.40%, and while GLD is more appealing in terms of costs, SGDM's one-year return of 147.1% far exceeds GLD's 72.9%, indicating its potential for higher gains during rising gold prices.
- Risk and Volatility: SGDM's maximum drawdown stands at -45.05%, while GLD's is -21.03%, suggesting that SGDM's portfolio bears greater risk during market fluctuations, making it suitable for investors with a higher risk tolerance.
- Liquidity and Market Performance: GLD, as one of the most liquid ETFs globally with over $173 billion in assets under management, has negligible trading friction, whereas SGDM's liquidity is relatively lower, appealing to investors seeking direct exposure to gold.
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Analyst Views on NEM
Wall Street analysts forecast NEM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NEM is 110.85 USD with a low forecast of 89.00 USD and a high forecast of 125.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 108.530
Low
89.00
Averages
110.85
High
125.00
Current: 108.530
Low
89.00
Averages
110.85
High
125.00
About NEM
Newmont Corporation is a gold company and a producer of copper, zinc, lead, and silver with operations and/or assets in the Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea regions. The Company's operations include Brucejack, Red Chris, Penasquito, Merian, Cerro Negro, Yanacocha, Boddington, Tanami, Cadia, Lihir, Ahafo, and NGM. The Brucejack operation includes four mining leases and six core mineral claims which cover 8,169 acres (3,306 hectares) and 337 mineral claims covering 298,795 acres (120,918 hectares). The Red Chris operation includes five mining leases which cover 12,703 acres and 199 mineral claims, encompassing an area of 164,903 acres (66,734 hectares). Penasquito includes 20 mining concessions for operations comprising 113,231 acres (45,823 hectares) and 60 mining concessions for exploration of 107,456 acres (43,486 hectares). The Merian operation includes one right of exploitation encompassing an area of 41,687 acres (16,870 hectares).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Comparison of Sprott Gold Miners ETF and SPDR Gold ETF
- Investment Structure Differences: The Sprott Gold Miners ETF (SGDM) focuses on 40 gold mining companies, while the SPDR Gold ETF (GLD) directly tracks the price of physical gold, resulting in significant differences in risk, returns, and trading characteristics that affect investor choices.
- Costs and Returns: SGDM has an expense ratio of 0.50% compared to GLD's 0.40%, and while GLD is more appealing in terms of costs, SGDM's one-year return of 147.1% far exceeds GLD's 72.9%, indicating its potential for higher gains during rising gold prices.
- Risk and Volatility: SGDM's maximum drawdown stands at -45.05%, while GLD's is -21.03%, suggesting that SGDM's portfolio bears greater risk during market fluctuations, making it suitable for investors with a higher risk tolerance.
- Liquidity and Market Performance: GLD, as one of the most liquid ETFs globally with over $173 billion in assets under management, has negligible trading friction, whereas SGDM's liquidity is relatively lower, appealing to investors seeking direct exposure to gold.
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Newmont Corporation Investment Outlook Analysis
- Strong Market Performance: Newmont Corporation (NYSE:NEM) saw its stock price surge by 168% in 2025, reflecting a significant increase in gold prices last year, showcasing its robust performance in the gold mining sector, although competitors like Agnico Eagle Mines also performed well.
- Investment Recommendations: While Cramer considers Newmont a solid investment choice, he expresses a preference for Agnico Eagle Mines, indicating that investors have multiple options in the gold market, which has shown overall strong performance.
- Industry Potential: Cramer highlights the excellent performance of the gold sector over the past year, suggesting that investments in this area carry relatively low risk, especially with the ongoing rise in gold prices, further solidifying Newmont's market position.
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Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
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- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
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Newmont Corporation Stock Continues Decline Amid Falling Commodity Prices
- Stock Price Decline: Newmont Corporation's shares have dropped 5.5% as of Thursday morning, marking the second consecutive day of declines, with a total decrease of 16.5% since reaching an all-time high of $132 on January 28, indicating a clear downward trend.
- Plummeting Gold and Silver Prices: Gold prices fell from $5,419.80 per ounce on January 28 to $4,660 by Monday, while silver prices dropped from $116.58 to $79.21, currently at $74.89, directly impacting Newmont's profitability.
- Market Reaction Analysis: While the market anticipates that falling gold and silver prices will affect Newmont's stock, analysts note that the stock trades at 18 times trailing earnings, with expected earnings growth of 38% this year, suggesting investment potential.
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Comparison of Sprott Gold Miners ETF and SPDR Gold ETF
- Investment Structure Differences: The Sprott Gold Miners ETF (SGDM) focuses on 40 gold mining companies, while the SPDR Gold ETF (GLD) directly tracks the price of physical gold, resulting in significant differences in risk, returns, and trading characteristics that affect investor choices.
- Costs and Returns: SGDM has an expense ratio of 0.50% compared to GLD's 0.40%, and while GLD is more appealing in terms of costs, SGDM's one-year return of 147.1% far exceeds GLD's 72.9%, indicating its potential for higher gains during rising gold prices.
- Risk and Volatility: SGDM's maximum drawdown stands at -45.05%, while GLD's is -21.03%, suggesting that SGDM's portfolio bears greater risk during market fluctuations, making it suitable for investors with a higher risk tolerance.
- Liquidity and Market Performance: GLD, as one of the most liquid ETFs globally with over $173 billion in assets under management, has negligible trading friction, whereas SGDM's liquidity is relatively lower, appealing to investors seeking direct exposure to gold.
See More
Three Unconventional "Buy the Dip" Selections—and One Sector to Steer Clear Of
Market Trends: The market is experiencing a pullback, creating opportunities for contrarian investors as many individual stocks are down significantly, suggesting a potential for selective buying strategies.
Investment Strategies: Jeff Clark emphasizes the importance of identifying oversold stocks and sectors, particularly in software and grocery chains, while advising caution against popular trades like gold mining stocks.
Bitcoin Sentiment: Current bearish sentiment around Bitcoin contrasts sharply with previous bullish trends, with Clark suggesting that today's prices may be more attractive for investment compared to past highs.
Contrarian Opportunities: Clark highlights that emotional market conditions often present unique investment opportunities, particularly in sectors that are currently undervalued or overlooked.
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Newmont Corporation Investment Outlook Analysis
- Strong Market Performance: Newmont Corporation (NYSE:NEM) saw its stock price surge by 168% in 2025, reflecting a significant increase in gold prices last year, showcasing its robust performance in the gold mining sector, although competitors like Agnico Eagle Mines also performed well.
- Investment Recommendations: While Cramer considers Newmont a solid investment choice, he expresses a preference for Agnico Eagle Mines, indicating that investors have multiple options in the gold market, which has shown overall strong performance.
- Industry Potential: Cramer highlights the excellent performance of the gold sector over the past year, suggesting that investments in this area carry relatively low risk, especially with the ongoing rise in gold prices, further solidifying Newmont's market position.
- AI Stock Comparison: Despite Newmont's impressive performance, the article notes that certain AI stocks may offer greater upside potential and lower downside risk, prompting investors to consider a diversified investment portfolio when making choices.
See More
The Real Comeback: Understanding Why Energy, Materials, and Staples Stocks Are Outperforming the Market.
Software Stock Slump: The recent decline in software stocks has raised concerns among investors, reflecting broader market volatility.
Bitcoin's Winter Meltdown: Bitcoin continues to experience significant downturns, contributing to a challenging environment for cryptocurrency investors.
Dollar's Ongoing Malaise: The U.S. dollar is facing persistent weakness, impacting global trade and investment strategies.
Memification of Precious Metals: Precious metals are becoming increasingly popular in meme culture, indicating a shift in how these assets are perceived and traded.
See More
Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
- Market Performance: Silver prices have experienced a decline, dropping 6% to $67 per ounce.
- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
See More
Newmont Corporation Stock Continues Decline Amid Falling Commodity Prices
- Stock Price Decline: Newmont Corporation's shares have dropped 5.5% as of Thursday morning, marking the second consecutive day of declines, with a total decrease of 16.5% since reaching an all-time high of $132 on January 28, indicating a clear downward trend.
- Plummeting Gold and Silver Prices: Gold prices fell from $5,419.80 per ounce on January 28 to $4,660 by Monday, while silver prices dropped from $116.58 to $79.21, currently at $74.89, directly impacting Newmont's profitability.
- Market Reaction Analysis: While the market anticipates that falling gold and silver prices will affect Newmont's stock, analysts note that the stock trades at 18 times trailing earnings, with expected earnings growth of 38% this year, suggesting investment potential.
- Investment Potential Assessment: With a PEG ratio of 0.5, Newmont's stock appears undervalued at current prices, and analysts generally view it as a buying opportunity, despite short-term price pressures.
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