GLDL VS DUST
3 min read
By Ron Koren, ETF Insider

GLDL VS DUST

Exchange-Traded Funds (ETFs) have transformed the landscape of investment, providing investors with an array of options to diversify their portfolios across different sectors and asset classes. In this article, we will undertake an in-depth comparison between two prominent ETFs: GLDL (Gold Bull 3x Shares) and DUST (Direxion Daily Gold Miners Index Bear 2X Shares). Our analysis will encompass a comprehensive examination of ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

GLDL Vs DUST: Overview

GLDL and DUST represent ETFs with distinct investment strategies within the gold industry. While GLDL aims to provide triple-leveraged exposure to the daily performance of gold bullion, DUST seeks to deliver double-inverse exposure to the NYSE Arca Gold Miners Index. These contrasting strategies result in different risk profiles and returns potential, making a thorough comparison essential.

GLDL Vs DUST: Sectors and Top Holdings

The GLDL ETF focuses primarily on gold bullion, and its holdings comprise physical gold. In contrast, DUST concentrates on the gold mining sector and holds short positions in companies like Newmont Corporation, Barrick Gold, and Franco-Nevada. Delving into the sectors and top holdings offers valuable insights for investors aiming to align their investment goals with their risk appetite.

GLDL  overlap GLDL VS DUSTGLDL overlap GLDL VS DUST

GLDL Vs DUST: Capitalization and Strategy

GLDL's impressive Asset Under Management (AUM) highlights its popularity among investors seeking amplified exposure to gold's price movements. On the other hand, DUST's strategy revolves around capitalizing on the inverse performance of gold mining stocks. Understanding the difference in capitalization and strategies is crucial for investors to assess the potential risks and rewards associated with these ETFs.

GLDL Vs DUST: Tracking and Exposure

GLDL is designed to deliver three times the daily return of gold bullion prices, magnifying potential gains and losses for investors. DUST, on the contrary, offers double-inverse exposure to gold mining stocks, aiming to capitalize on downward movements in the sector. The divergence in tracking and exposure mechanisms demands a nuanced evaluation, as it has a direct impact on the ETFs' performance under varying market conditions.

Conclusion

GLDL and DUST are distinct ETFs, each catering to specific investment preferences within the gold market. For investors seeking deeper insights into holdings, correlations, overlaps, and various other metrics, ETF Insider emerges as an indispensable tool. With its user-friendly app, ETF Insider empowers investors with comprehensive information about these and other financial instruments, aiding in informed decision-making.

Disclaimer: This article is intended solely for informational purposes and does not provide any form of investment advisory services.

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FAQ

  • Why is GLDL better than DUST?

    GLDL may be considered better than DUST for some investors due to its specific focus, offering diversification.

  • Does DUST beat GLDL?

    DUST's performance relative to GLDL will vary over time, depending on market conditions.

  • Should I invest in GLDL or DUST?

    The choice between GLDL and DUST should align with your investment goals, risk tolerance, and desired exposure.

  • Are GLDL and DUST good investments?

    Both GLDL and DUST can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between GLDL and DUST?

    The correlation between GLDL and DUST can vary over time, reflecting differences in performance.