Image from Newmont.
Investors are exiting exchange-traded funds that track the shares of gold-mining companies, a sign that the high-flying sector’s allure may be dimming even as prices for the precious metal remain strong.
Gold-mining stocks have soared this year, outpacing the 24% climb in gold prices and leaving the broader S&P 500 Index in the dust as investors sought haven assets amid worries over global trade and massive government spending. The VanEck Gold Miners ETF, the largest exchange-traded fund tracking the group, is up 57% year to date.
That performance hasn’t stopped investors from heading for the exits in recent months. Van Eck’s fund has seen net outflows every month so far this year, except for May. Others are feeling similar selling pressure: The Sprott Gold Miners ETF saw outflows in May even as bullion prices set a record high.
“People are actually selling their shares of…
