ProShares gives ETF traders aggressive way to play gold miners

ProShares is tapping into the rising volatility of gold with four exchange-traded funds designed with traders in mind. The provider of alternative-strategy ETFs is offering the first access to leveraged long or short gold-miner and junior gold-miner stocks. “We don't anticipate buy-and-hold investors to be in the audience for these ETFs,” said Michael Sapir, co-founder and chief executive of ProShares. (More: A new vehicle for gold investors takes on GLD) United Gold Miners (GDXX) leverages twice the daily performance of the NYSE Arca Gold Miners Index. UltraShort Gold Miners (GDXS) goes two times short the daily performance of the NYSE Arca Gold Miners Index. Ultra Junior Miners (GDJJ) leverages twice the daily performance of the Market Vectors Global Junior Gold Miners Index. And UltraShort Junior Miners (GDLS) goes two times short the daily performance of the Market Vectors Global Junior Gold Miners Index. In explaining the strategy behind offering multiple ways to bet on gold miners as proxy for the precious metal itself, Mr. Sapir noted that the $7.4 billion Market Vectors Gold Miners ETF (GDX) was the 10th-most-traded ETF last year. (More: Five surprise investment themes for 2015) “People have been trading gold for thousands of years, and miners are just an extension of that,” he said. “Traders like volatility, and that's why they're attracted to gold miners. These ETFs offer access to some greater volatility, and they also allow traders to play on either side of the street.”