GDXJ - What does it mean? - GGPHelp Guide.21 Sep 2020 01:02
We have created this as our GDXJ journey Begins.
On the 18th September 2020, Greatland Gold was added to the ETF for VanEck and their fund that tracks the Junior Gold Mine Explorers.
Fund Description
“VanEck Vectors® Junior Gold Miners ETF (GDXJ®) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVIS® Global Junior Gold Miners Index (MVGDXJTR), which is intended to track the overall performance of small-capitalization companies that are involved primarily in the mining for gold and/or silver.”
Source: https://www.vaneck.com/etf/equity/gdxj/overview/
What’s in it for Greatland Gold.
I asked some fellow long term investors why they thought the benefits of being included in an ETF, like GDXJ. This is what they said, and should be noted that this is their opinion on it and not fact.
“Security” – Investors who may be interested will find security as we are part of a Global ETF.
“Strength” – Not all companies make it into this particular ETF. In fact, every quarter the index is rebalanced so that they can add or remove those companies whose performance has changed.
“The shares are no longer on the open market.” – When the ETF bought the shares, they removed over 120m of shares from the open market, this reduces volatility and stabilises the share price.
“Cost of Capital has been reduced” – Important for any company that is funded by investments.
https://www.thestreet.com/investing/what-is-cost-of-capital-14814298
“Promotion to Division 1 of global miners”, No longer just a minor explorer.
“$8bn of other money tracks the fund's investments” – there is a large amount of money that follows the GDXJ, we can expect a proportion of this to come into the company while we hold a position in the fund.
“Global recognition of GGP amongst peers and fund managers with access to new investors in the US market.”
More and more people are now being exposed to Greatland Gold.
- Thanks to “Hydro”, “Rational Assessor” and “Mr Feasible” for their input in this section.
What are the criteria for entry?
“The modified market cap-weighted index tracks the performance of the most liquid junior companies in the global gold and silver mining industry. The pure-play index contains only companies that invest primarily in gold or silver, or generate at least 50% of their revenues from gold or silver mining or own properties that have the potential to generate at least 50% of their revenues from gold or silver mining when developed. The MVIS Global Junior Gold Miners Index (MVGDXJ) has been licensed to underlie financial products with currently USD 8071.22 million in assets under management.”
Size and Liquidity Requirements
Full MCap of at least 150 mln USD.
Three-month average-daily-trading volume of at least 1 mln USD at a review and also at the previous two reviews.
At least 250,000 shares traded per month over the last six months at a review and also at the previous two reviews.
(src: h
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