With Gold near all time highs there is strong investor demand for all types of Gold ETF products. Initially during the first stages of a bull market people tend to favor the metal and large cap mining stocks.
The top Gold ETF Funds are: GLD, IAU and SGOL
The leading Gold Mining ETF is GDX
Then as speculative fever takes over investors (and especially traders) become more aggressive so they move into Leveraged Gold ETFs such as: DGP and UGL. They also move from the large cap gold stocks into the small cap or "Junior" mining stocks which tend to be much more volatile. The best ETF to capture the movement of these small cap miners is GDXJ which is only a year old but already trades over 2,200,000 shares per day on average.
During strong bull markets you will find that Silver generally outperforms gold as well just as the Nasdaq tends to outperform the S&P500 during strong stock market rallies.
Once the tide turns, which they always do then investors will be looking for ways to play the down side. There are several short gold etf products to choose from:
DGZ is the only one that is an unleveraged short gold etf.
UGL is a double short Gold ETF
DZZ is a double short Gold ETN
If you compare the performance of DZZ and UGL you will see they have very similar characteristics but the actual contract risk in a time of crisis may differ. Some pundits say that ETNs have more contractual risk because of the way they are structured.
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