Q: Good Morning Peter, Ryan, and Team,
Could I get your opinion of ZJG ETF from BMO please ??
The large cap golds have done really well lately and my guess is that the Junior Gold space will really get it into gear moving forward.
If you have a better alternative to ZJG I would love to hear about it.
Thank you so much for your expertise. DL
Could I get your opinion of ZJG ETF from BMO please ??
The large cap golds have done really well lately and my guess is that the Junior Gold space will really get it into gear moving forward.
If you have a better alternative to ZJG I would love to hear about it.
Thank you so much for your expertise. DL
5i Research Answer:
We think ZJG is fine. It has outperformed SGDJ (US listed) but some of the outperfomance is currency related. Junior golds have already joined the party. They may surge further as confidence builds, but of course have more risk. But we remain bullish on the sector. Consolidation continues, and junior valuations are lower than seniors, in many cases. ZJG is up more than 100% this year. We would not really expect these types of returns on a consistent basis, of course, but we would remain very comfortable holding this right now.