Possible GDXJ weighting an buy23 Aug 2020 23:03
A stab at our potential weighting in GDXJ: the weighting appears to be based on free float market cap. This is the market cap minus shares not in open circulation e.g. held by governments/insiders/directors etc.
As of today the total Full market cap of all companies in the listing is $101 billion, but the total free float market cap is 68 billion, meaning on average for each company 32% of shares are not in free float.
Only 7.2% of GGP shares are not in open circulation, so substantially less than the average company in the index and really increases our weighting. Meaning our free float market cap is £450 million ($580 million UDS) at present. The market cap used in the index is taken on the 31st August. I suspect we may have a little rise by then.
Thus if there were no other additions our weighting in the index would be 580 million/ 68.58 billion = 0.85% as of today/
Of course it is highly likely that there will be other additions because so many juniors market caps have gone through the roof over the past quarter which would dilute the weighting a little. There are also other quirks like some silver companies can only be given a max weighting etc. But overall, I think we are looking at 0.5% +
The current fund is worth 6.4 billion USD. This would equal 32 million USD (£24 million). At an average share price at say 15p that equals ~ 160 million shares.
0.85% would equal 270 million shares.....
Bottom line a very big event.
Disclaimer: I add 'i think' to all the above a little bit tricky to completely understand, double checks on calculations needed.
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