past articles, this fund and its junior miners sibling, Market Vectors Junior Miners ETF ( GDXJ), give investors the opportunity of ETF coverage on either established operations or more volatile explorers and small producers. ABX)with 16.3%, Goldcorp ( GG) with 11. 9%, Newmont Mining ( NEM) with 10.8%, Anglogold Ashanti ( AU) with 5.9% and Kinross Gold ( KGC) with 4.8%. Over the past year, GDX gained 23.5% and it is up 6.5% thus far in 2010. That compares to a 14.7% gain and a 0.5% loss over the same period for SPY. Fidelity Select Gold ( FSAGX) offers similar exposure. In terms of country diversification, FSAGX is largely rooted in Canadian gold corporations, with 50.6% of the fund's assets designated to Canadian companies and 17.2% to American holdings. Other noteworthy nations include South Africa (11.2%), Australia (7.0%), and the United Kingdom (6.3%).
Almost mirroring GDX's allocation, FSAGX's top five holdings include Barrick , Gold Corp, Newmont, Anglogold Ashanti, and Randgold Resources ( GOLD). In its entirety, FSAGX contains 107 individual holdings, and is relatively top heavy, with the top 10 holdings within the fund comprise 62.3% of its total assets. In terms of performance, FSAGX has very similar returns as GDX too, up 23% in the past year and 6.6% in 2010. Either fund is a good choice this week ahead of several earnings announcements. The three largest holdings in both funds, ABX, NEM and GG, all report earnings this week, as do Agnico-Eagle Mines ( AEM) and Eldorado Gold ( EGO). Even though gold prices have been flat over the past month, stalling the rally in gold miners, the price of gold remains elevated. That should translate into stronger earnings for the gold mining companies, which could lead to higher stock prices. However, thus far investors haven't rewarded the companies for higher earnings. Instead the stock prices have tended to follow the metal. Therefore, unless we see an earnings rally this week, investors may be stuck following the price of gold. For long-term investors, that provides the opportunity to pick up shares at less than their full value. -- Written by Don Dion in Williamstown, Mass.
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