GDXJ Rebalance Q2 202514 Jun 2025 08:32
Quite a bit to unpick from last night’s GDXJ rebalance. Please see above, for implications on numbers, and below for some rationale behind these numbers.
Before delving into the actual numbers and the changes from last nights rebalance, it should be pointed out the US Quote for the GDXJ is currently significantly underweight with it's holding in GGP shares. They currently hold just under 139 Million shares (0.55% of the index) where they should actually hold circa 354 Million (1.43% of the index).
So although there is a significant reduction of our weighting in the GDXJ in last nights rebalance, VanEck still need to acquire approx 117 Million shares, in order to accurately replicate the actual MVIS numbers for the index following the Q2 rebalance.
The announced rebalance weighting for Greatland Gold for the Q2 rebalance was 1.03%, down from last nights closing weighting of 1.43%.
• MVIS have finally corrected their Free Float calculation for Greatland Gold. Reducing the percentage from 80% to circa 59%.
o I had previously pointed out that they were using the wrong Free Float weighting, and that they should have been using the new value of 0.59
o It is somewhat ironic that they have taken 8 Months to correct this value given the fact that Newmont are now offloading 50% of their holding on Monday. So that Free Float figure will be out of date as of Monday and therefore from Monday should be set at circa 0.70.
• The Top 5 constituents in the index had underperformed the other constituents in the index during the last quarter.
o Requiring a minor re-allocation of funds from all other constituents to reset their required rebalance holdings (to 7%, 6.5%, 6%, 5.5% & 5%) as per fund rules.
• Please note that there were no Additions or Deletions from the index during the rebalance.
The above reasons contributed to the reduction of weighting in Greatland:
Free Float Weighting 0.80 to 0.59 = 0.21
0.21/0.80 = 26.25% or 0.38 in the reduction of Greatland’s index weighting
Reallocation of funds to Top 5 – 1.53% of entire GDXJ Fund value
Contributed to the remainder of the weighting change (0.02).
Noting that the Total change in Weighting was 0.40 (rounded).
I hope that all makes sense and is useful.
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