GDXJ - Q3 2022 Reblance

[Nitram64]

The GDXJ Q3 2022 rebalance was announced this evening after US Market Close.

Current weighting as at 08.09.2022 = 0.56%

Rebalance = 0.61 %

Data downloaded from the latest review - https://www.marketvector.com/indices/ha ... old-miners

Bloomberg Ticker Name ISIN Sedol Country Final Float Shares Float MCap (USD) Capping Factor Weight (Capped)
GGP LN GREATLAND GOLD ORD GB00B15XDH89 B15XDH8 United Kingdom 4,343,788,076 391,474,170 1.000000 0.61%

[Redirons]

Sorry Nitram - I think you are trying to give us good news here but there are so many figures showing, it’s not easy to see how many more shares are GDXJ going to be purchasing and when?? I can see 0.56% going up to 0.61% but can you translate that into how many more shares and when?? Many thanks - Red.

[Spondy]

Data from 8th Sept
Greatland Gold Plc was 0.56% of the net assets of GDXJ VanEck Junior Gold Miners UCITS ETF
19,248,220 shares valued at $1,802,313

0.56 to 0.61 percent of the fund is approximately a 10% increase or 2 million shares.

[Nitram64]

The increase by 0.05% in the weighting will not make any significant change in the number of shares needed by Vaneck to rebalance the funds.

If you look at the current holdings of Vaneck (US Fund = $3.3Billion + UK = $333Million ) = $3.63 Billion

An additional 0.05% equates to :-

0.05% * $3.63 Billion = $1.8165

at current SP of approx $0.10 cents per shares = 18.165 Million

So it suggests an increase in excess of 10 Million shares (possibly as many as 20 Million), however, these are only rough figures, and it is not known exactly how many will be needed for the rebalance next Friday.

The good news from my side is that there will be no sell off of GGP shares which would have potentially given the "shorters" a number of easy shares to buy.

An increased demand for shares can only be good for the SP. Hopefully we are beginning to turn the tide in that respect.

[Nitram64]

@Spondy - You were only looking at the UK Index, the US Index is 10 times the size.

[Habari65]

I would like to think that will give a positive push on the SP, given it’s about our weekly volume at the moment.

[Spondy]

Hi Nitram. Happy to be corrected. Holdings to increase by approximately 20 million shares then.

[RationalAssessor]

Hi Nitram - Many thanks for calculating and posting the results of the recent rebalancing of GDXJ. Also for calculating the anticipated purchase of GGP by the GDXJ.

Those calcs will, I imagine, be impacted both by the SP of GGP and the £$ exchange rate as at the end of next week. Should either of the GGP share price or the ££ strengthen between now and Friday, the number of shares required by the GDXJ could be impacted quite significantly - possibly to the point that they may need to sell - is that correct?

[Nitram64]

@RationalAssessor - Yes, as you say, there will be a number of factors that may impact the amount of shares needed to rebalance the fund.

1. Share Price movements
2. Exchange Rate movements
3. The fund value (affected by buys and sells into the fund).
etc.

I would be surprised if any of these factors had such an impact that a sell was needed for the rebalance, I guess it's a wait and see what happens next Friday.

The key point to me is that it should not give the "shorts" an easy escape route from their existing position.