RE: GDXJ17 Jun 2024 15:47
@Hopefullygold - As Sureasblazes states, pretty much no change expected for the current rebalance: -
Our current weighting is 0.42%, the rebalance announcement was 0.42% so no change.
In order to explain this lack of movement, please see comments below.
1. Over the past quarter all constituents have gone up by an average of 12.87% (GGP 13.53% so very similar). Being similar means that any money flowing into and out of the fund would have likely bought/sold the same amount of shares as would have ocuured if it was done in a single tranasaction at close of quarter (the reason for the rebalance)
2. Over the past quarter there has been a small outflow of funds from the GDXJ (people selling), less than 1% of total held. Hence a minor reduction of shares held in most constituents.
3. The free float (number of shares not held by insiders or holders with holdings over 3%) has changed for many of the constituents. A larger free float would necessitate the Fund to buy more, a smaller free float less. GGP's free float remains unchanged.
4. The top 5 constituents of the GDXJ should not exceed 30% of the fund at rebalance/reweighting, hence their weighting reduction. The current weighting of this top 5 is approx 32% of the fund, so 2% (around $100 Million USD) should be released to spread over all other constituents.
4.a. I did expect this to have a positive affect on GGP and increase our weighting slightly, however, it does not seem to have impacted it. If it does when the rebalance takes place it my need a purchase of around 6 Million shares.
So to confirm, there is no change in weighting, and no significant purchase/sale of GGP shares expected on Friday.
Sign In
Follow the stocks
