What kind of ETF is JNUG?

JNUG provides geared exposure (2x) to the MVIS Global Junior Gold Miners Index—a market-cap-weighted index of global gold mining companies that derive at least 50% of their revenue from gold or silver mining activities. The index caps exposure to silver mining firms at 20% during each quarterly review.

Is JNUG a leveraged ETF?

JNUG Stock is a Leveraged ETF (LTEF)

Year-to-date, they are up 14% each. There are also investment funds that invest in various miners, such as the VanEck Vectors Gold Miners ETF (NYSEARCA:GDX) or the VanEck Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ). In 2020, they are up 23% and 12% respectively.

Is JNUG a decaying ETF?

Take almost any one of these stocks — JNUG included — and plot them on a multi-year weekly chart. You’ll see that over the long term, these ETFs decay and have almost no value to them compared to where they were several years ago. That said, JNUG and other triple-leveraged ETFs can make big moves in the short term.

Is JNUG a good long term investment?

The Direxion Daily Junior Gold Miners Index Bull (NYSE:JNUG) is up 278% since the stock market bottomed on March 23, but that’s not the whole story on the JNUG ETF. … At this point, gold is a great medium-term trade, but a terrible long-term investment. But the JNUG ETF is too dangerous to hold even in the medium-term.

THIS IS INTERESTING:  Should you share your problems?

Will JNUG go up?

Yes. The JNUG fund price can go up from 74.030 USD to 95.938 USD in one year.

Does JNUG track gold?

JNUG is just one of a pair of ETFs that are tracking the gold miners market. JNUG is the bullish (upside) listing, while JDST is the bearish (downside) short version. Both intend to deliver positive results but are optimized for opposite market conditions.

Why is JNUG going up?

Conclusion. JNUG’s underlying index is highly correlated to changes in the price of gold. Gold markets are likely going to rally over the next year due to equity market volatility. If we see the price rally in line with historic averages, JNUG could increase by 90% over the next year.

Why does JNUG drop so much?

Leveraged ETFs like JNUG get crushed in a volatile market. One reason for this is because the JNUG ETF uses leverage, that leverage has to be rebalanced every day. The long and short of it is that with leveraged ETFs, the more volatile the benchmark, the more value tends to get lost over time.

Which is better JNUG or Nugt?

JNUG is for “junior” small cap gold mining companies, while NUGT is for more established, mature gold mining companies. If you want to invest in gold mining ETFs and are deciding between NUGT and JNUG, the ultimate decision will come down to whether you want to invest in large or small gold mining firms.