Van Eck is changing the index that its Gold Miners ETF (GDX) tracks. Until now it has tracked the NYSE Arca Gold Miner's Index. From 19 September it will track the Market Vector Gold Miner's Index.
Given these 2 Indexes have different components the ETF will dispose of certain gold companies and add others relative to those indexes. For example Belleview Gold is not included in the new index, accordingly the GDX will sell those shares held in Belleview on that date (roughly 1.5M shares). By contrast the new index has a higher weighting of Northern Star meaning the GDX will be acquiring more Northern Star shares in September.
If you look at the last column in the table below a negative indicates shares will be sold, a positive means shares will be added.
Catalyst is not a component of the GDX and wont be affected by these changes.
CYL Price at posting:
$5.82 Sentiment: None Disclosure: Not Held
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