These 2 gold ETFs are up nearly 400 percent in 2025
As gold tops $4,000 an ounce, gold and gold miners are delivering unprecedented returns.

On October 7, gold hit $4,000 an ounce for the first time ever. It marks the latest milestone in an incredible rally that has resulted in gold prices rising 50% so far in 2025.
There are a few reasons for the strength in gold:
- Safe haven demand: Concerns about the labor market slowing, stubborn inflation, and weakening worldwide demand have resulted in some investors taking risk off the table.
- Central bank buying: Global central banks have been increasing their gold reserves throughout the past year as they attempt to de-dollarize.
- Lower interest rates: In a vacuum, lower interest rates make non-yielding assets, such as gold, look comparatively more attractive.
ETF investors have added more than $36 billion of net inflows into gold ETFs so far in 2025, making it one of the most successful asset classes of the year.
Gold miners have done even better. In addition to the tailwind of rising gold prices, miners have been able to take advantage of operating leverage to disproportionately improve profits and margins.
Since the cost of mining gold is fixed to some extent, higher gold prices can translate directly to the bottom line. It’s why gold miners are often considered a leverage version of gold.
The largest ETF in this category, the VanEck Gold Miners ETF (GDX) is up 132% year-to-date through October 6. Even that fund isn’t the best-performing of the bunch.
If you were willing to dabble in a leveraged version of this fund, the results have been even better. Image source: Naowarat/Shutterstock
How do leveraged ETFs work?
Leveraged ETFs are different from traditional equity ETFs in that they typically don’t invest in stocks at all. They invest in derivative instruments, such as swaps, that are designed to deliver some degree of exposure to a security or asset class.
A 2x leveraged ETF, for example, would be designed to deliver 200% of the daily return of the underlying security. It’s important to emphasize the “daily” part of this objective. Leveraged ETFs are not necessarily designed to be long-term investments, and the daily reset of leveraged exposure could result in different returns over time.
Volatility is generally the enemy of leveraged products. However, in steadily upward trending markets, such as the one we’ve seen in gold and gold miners this year, the returns can be substantial.
Leveraged gold miner ETFs are up nearly 400%
There are two primary leveraged gold miner ETFs: the Direxion Daily Gold Miners Index Bull 2X Shares ETF (NUGT) and the Direxion Daily Junior Gold Miners Index Bull 2X Shares ETF (JNUG).
As the names suggest, NUGT provides leveraged exposure to the larger gold miners, while JNUG targets the smaller ones.
Regardless of the group, the results in 2025 have been outstanding. Through October 6, NUGT is up 366%, while JNUG is up 386%.
Related: Gold just did something that it hasn't done since 1980
These returns are in no way normal and should not be expected, nor should they really even be attempted. Leveraged ETFs are designed to be short-term trading vehicles more than anything and holding them for nine months wouldn’t be advised.
Under the right set of conditions, though, they can deliver eye-popping returns. The combination of economic and geopolitical circumstances in 2025 has delivered that right set of conditions for both gold and gold miners.
Key Takeaways:
- Gold has rallied due to a combination of safe haven trades, central bank buying and falling interest rates.
- Gold miners have traditionally acted as a leveraged version of gold.
- 2x leveraged ETFs are designed to deliver 200% of a single day’s performance.
- In a steadily rising, low volatility market, leveraged ETFs can deliver substantial returns.
Final thoughts: Exercise caution with leveraged ETFs
In the words of George Clooney’s titular character in "Ocean’s 11," he could be speaking about leveraged ETFs when he says, “What I’m about to propose to you is both highly lucrative and highly dangerous.”
Leveraged ETFs are not for the faint of heart, and downside risk is significant. However, when they work, they can work very well. The performance of both gold and gold miner stocks this year has perhaps been a best-case scenario — huge returns and a steady uptrend.
For leveraged ETFs targeting these asset classes, the results have been even better.
Related: Vanguard slashes fees on 6 ETFs
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