GDMN vs SGDM

GDMNCWisdomTree Efficient Gold Plus Gold Miners Strategy Fund

SGDMBSprott Gold Miners ETF

In short

GDMN Gold or the miners? GDMN declines to choose. For every $100 it aims to hold roughly $90 of global gold miners plus gold futures worth about $90 more in notional terms, stacking two gold trades into one ticker.

SGDM SGDM doesn't just rank gold miners by size. It tracks a custom-factors index of roughly 50 larger miners listed in Canada and the US, and charges 0.46%, under its peer group's median fee.

Stated mandate

GDMN The Fund seeks total return by investing in U.S.-listed gold futures contracts and global equity securities of companies deriving at least 50% of their revenue from gold mining. Gold futures are used to enhance capital efficiency.

SGDM The fund seeks to track, before fees and expenses, the performance of the Solactive Gold Miners Custom Factors Index, which targets larger gold companies listed on Canadian and major U.S. exchanges.

Why people hold it

• GDMN Return stacking in an ETF wrapper: about 90% of net assets in gold miner equities, with U.S.-listed gold futures adding roughly 90% of notional exposure on top.sec.govwisdomtree.com
• The 0.45% fee sits under the typical precious-metals miner fund and below GDX's 0.51%, even with the futures sleeve doing extra work.
• Discipline is written into the design: when exposure drifts 5% or more from the 90/90 target, the fund is expected to rebalance back toward it.sec.gov
• Actively run, but measured against the NYSE Arca Gold Miners Index, the same benchmark behind AUAU, so the equity sleeve is judged on familiar ground.

• SGDM Fee of 0.46% sits under the median for precious-metals miner funds, and under both GDX (0.51%) and GDXJ (0.52%).
• Rules-based and named out loud: it follows the Solactive Gold Miners Custom Factors Index (SOLGMCFT), and it has stayed close to that stated mandate.
• Running since 2014, a long life for a thematic fund, and it holds about 50 larger gold companies rather than a sprawling list.
• Lands in the upper half of the gold and silver miner group in our review, with high confidence in the underlying data.

Worth knowing

• GDMN The stack cuts both ways. Roughly 180% gold-linked exposure magnifies losses as well as gains, and the prospectus flags higher volatility than an unlevered version.sec.govwisdomtree.com
• It trades lightly next to the category's heavyweights, which can mean wider spreads and more care needed on size.
• Gold exposure runs through a wholly-owned Cayman subsidiary, routine for commodity futures in a fund but more machinery than a plain miners basket.sec.gov

• SGDM Thinly traded next to the category's giants, so spreads can be wider and larger orders can push the price around.
• The index sticks to Canadian and major US listings, so gold miners quoted only on other exchanges sit outside the portfolio.
• One industry, driven by the gold price and how well mines actually run, so the ride is bumpier than a broad stock fund.

Full GDMN profile⁠

Full SGDM profile⁠