U.S. Global Investors, Inc. (NASDAQ: GROW) announced that its GO GOLD and Precious Metals Miner ETF (GOAU) will transition from a passive index strategy to an actively managed approach while keeping the same name, ticker, and expense ratio of 0.60%. The change is intended to give the fund greater flexibility to select securities and manage risk in the current gold‑mining environment.
GOAU has delivered a 1‑year return of 142.4% and a year‑to‑date gain of 78.9% as of December 22, 2025, outperforming the broader gold‑miner index by more than 30 percentage points. The strong performance, driven by a 45% rise in the top‑holding company’s share price and a 12% increase in the sector’s earnings, set the stage for the firm to pursue a more selective, alpha‑generating strategy.
The decision to move to active management follows a record‑setting year for gold, with spot prices reaching $4,421 an ounce on December 22, 2025. The volatility and rapid price swings in the gold‑mining sector have exposed inefficiencies in passive indexing, prompting the firm to believe that active security selection can better capture upside while mitigating downside risk. CEO and Chief Investment Officer Frank Holmes said, “Security selection matters more than broad exposure in this new precious‑metals cycle.”
GOAU will continue to apply its proprietary Smart Beta 2.0 investment discipline, which blends quantitative factor‑based selection with fundamental analysis. Under the new active framework, the team will use the Smart Beta 2.0 model to screen for high‑quality miners, then apply active overlays to adjust position sizing, sector exposure, and risk limits in response to market developments.
Existing investors will not see a change in the fund’s expense ratio or ticker symbol, but the shift to active management may alter the fund’s risk‑return profile. While the active strategy aims to generate higher alpha, it also introduces greater discretion and potential for larger swings in performance compared to the passive benchmark. The firm has emphasized that the active approach will still be anchored to the Smart Beta 2.0 framework to maintain a disciplined, factor‑driven foundation.
The move positions GOAU as a differentiated product in a crowded ETF market, aligning with a broader industry trend toward active management in specialized sectors. By leveraging active oversight, the fund seeks to capitalize on the current gold‑mining boom while protecting investors from the heightened volatility that has accompanied record gold prices.
The announcement comes at a time when gold prices have reached all‑time highs, with spot gold hitting $4,562 an ounce on December 26, 2025. The sustained demand for gold and precious‑metal miners, driven by geopolitical uncertainty and central‑bank buying, provides a favorable backdrop for the fund’s new strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.