GDX vs. SGDM: A $27 Billion Size Gap and a Concentration Difference Worth Noting

VanEck Gold Miners ETF (NYSEMKT:GDX) and Sprott Gold Miners ETF (NYSEMKT:SGDM) both focus on gold mining companies, but GDX stands out for its much larger size and broader holdings, while SGDM edges ahead on yield and historical risk metrics.

Both SGDM and GDX provide exposure to gold miners, concentrating on companies that generate most of their revenue from gold mining activities. This comparison looks at their costs, recent performance, risk profile, portfolio makeup, and trading characteristics to help investors gauge which fund may fit different gold-focused strategies.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months.

Costs are nearly identical between the two, with SGDM just edging out GDX on expense ratio. SGDM also pays a modestly higher dividend yield, which could appeal to investors seeking a slight income tilt alongside gold exposure.

Performance & risk comparison

What's inside

GDX tracks a broad index of global gold miners, holding 57 companies as of nearly 20 years since launch. Its portfolio is fully allocated to basic materials, with large positions in Agnico Eagle Mines Ltd (TSX:AEM.TO)

, Newmont Corp (NYSE:NEM), and Barrick Mining Corp (TSX:ABX.TO). The fund’s scale and age contribute to deep daily trading liquidity and a wide selection of industry leaders.

SGDM also focuses exclusively on gold miners, but with a more concentrated approach: it holds 39 stocks, all in the basic materials sector. Top holdings include Agnico Eagle Mines Ltd (TSX:AEM.TO), Barrick Mining Corp (TSX:ABX.TO), and Newmont Corp (NYSE:NEM). Both funds have similar sector tilts and top stocks, but SGDM’s smaller roster translates to a slightly different risk/reward profile.

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What this means for investors

When two funds hold the same top names in the same order, the differences that matter are underneath the surface. GDX and SGDM both lead with Agnico Eagle, Barrick, and Newmont — but what separates them is how much of the fund those names represent and how much room is left for smaller miners to move the needle. GDX spreads its bet across 57 companies. That means the giants anchor the fund but a meaningful slice of the portfolio is exposed to mid-tier and smaller miners, which can add volatility but also catch upside from companies earlier in their growth cycle. SGDM concentrates in 39 stocks, which effectively gives its top holdings more weight and reduces exposure to the smaller names that GDX carries further down the list.

For most investors the practical difference is modest — these funds will move together in most market conditions. Where it shows up is in degree. When gold prices rise and sentiment toward miners improves broadly, GDX's wider net catches more of that momentum across the sector. When conditions are uncertain, SGDM's tighter focus on established leaders may provide a marginally smoother ride. GDX's $28 billion in assets dwarfs SGDM's $660 million — for trades in the low millions, that gap starts to matter in the form of wider spreads and potential price slippage. For typical retail investors it's a non-issue, but worth knowing if your position size ever grows significantly.

Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.