Global X Funds has launched the Global X Gold Explorers ETF, which it says is the first exchange-traded fund to invest in gold exploration companies.
“Gold exploration companies offer high risk-return characteristics with the potential to strike a gold mine, literally,” said Global X Chief Executive Officer Bruno del Ama.
The fund tracks the Solactive Global Gold Explorers Index, comprised of the largest and most liquid listed companies that explore gold.
“We believe an ETF is a fantastic structure to provide access to this segment of the gold mining industry,” said Jose C. Gonzalez, head of operations at Global X. “This is the venture capital of gold, and GLDX offers the opportunity to capture the fantastic returns of one company striking gold while smoothing over the losses generated by failed projects.”