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Tuesday, Aug 13
Popular gold miner index retools to allow non-U.S.-listed firms
- The NYSE Arca Gold Miners Index is undergoing a major revamp - effective September 20, the index will expand its universe of securities to non-U.S.-listed companies, and will begin excluding those firms will less than $750M in market cap. The index will also include the use of ADRs and GDRs.
- A "buffer" below the $750M mark will be used to reduce turnover as well as to grandfather in any company currently in the index with greater than $450M market cap.
- The Market Vectors Gold Miners ETF (GDX) and the Direxion Daily Gold Miners Bull 3x ETF (NUGT) currently track this index.
- IndexUniverse Director of Research Elisabeth Kashner isn't pleased: "We ignore this development at our peril ... If indexes can be retooled as funds can be, then it makes indexes less useful as yardsticks."
- Other gold miner ETFs: GDXJ, GLDX, PSAU, DUST, GGGG, RING.