Understanding and Trading Gold Bugs Index

By February 4, 2015 Newsletter 2 Comments

The NYSE Arca Gold BUGS (Basket of un-hedged Gold Stocks) Index (also known as the HUI Index) is a modified equal dollar weighted index of companies involved in gold mining. The Gold BUGS Index is listed on the NYSE Amex under the symbol “$HUI”. The $HUI Index and Philadelphia Gold and Silver Index ($XAU) are the two most watched gold indices on the market.

The Gold BUGS Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. The $HUI Index was developed with a base value of 200.00 as of March 15, 1996. The AMEX Gold BUGS Index currently consists of 16 of the largest and most widely held public gold production companies. Since bottoming in late 2000, HUI went on to be the top-performing US stock sector of the decade, rising by about 1600%.

$HUI Index Components

1. GoldCorp – GG – 16.20%
2. Barrick Gold -ABX – 15.37%
3. Newmont Mining – NEM – 10.88%
4. Harmony Gold Mining – HMY – 5.21%
5. Coeur d’alene Mines – CDE – 5.11%
6. Yamana Gold – AUY – 5.00%
7. Anglogold Ashanti Ltd – AU – 4.88%
8. Gold Fields Ltd – GFI – 4.8%
9. Randgold Resources – GOLD – 4.71%
10. Iamgoldcorp – IAG – 4.43%
11. Eldorado Gold Corp – EGO – 4.34%
12. Hecla Mining – HL – 4.14%
13. Comp de Minas Buenaventura – BVN – 4.08%
14. New Gold Inc – NGD – 3.90%
15. Kinross Gold – KGC – 3.85%
16. Agnico Eagle Mines – AEM – 3.11%
Adjustments are made quarterly after the close of trading on the third Friday of March, June, September, and December so that each component stock represents its assigned weight in the index. The above weightings may not be 100% accurate due to adjustments taking place four times a year.

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