Indexfundfan\’s blog (new URL is Indextown.com)

June 24, 2006

Gold Miners ETF

Filed under: Investing — indexfundfan @ 6:01 pm


I have been watching the Gold Miners ETF (GDX, ER 0.55%) with interest since it started trading a few weeks ago. It appears to track fairly closely with the Vanguard Precious Metals and Mining fund (VGPMX, ER 0.4%) and has a respectable trading volume.

I think this would be a good substitute fund in a taxable account for the VGPMX fund in my tax-deferred account. It could also be used for tax harvesting purposes — if there is another huge run-up in precious metal equity, I would sell off some of my VGPMX allocation in my tax-deferred account and purchase the equivalent amount of GDX in my taxable account. Later, if/when this sector corrects, I would then be able to sell off GDX at a loss, harvesting a tax benefit, and at the same time purchase back VGPMX in the tax-deferred account.

Hmm, sounds like a plan…

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1 Comment »

  1. gdx has been making higher highs and lows and recently bounced off the 50-day moving avg.

    http://goldstockpicks.blogspot.com/2006/08/are-gold-stocks-ready-for-takeoff-try.html#links

    Comment by goldguru — August 22, 2006 @ 12:05 am


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