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  • Van Eck’s Highly Anticipated Market Vectors Junior Miners ETF Is Set For It’s Debut 0 comments
    Nov 10, 2009 05:06 PM | about stocks: GDX, GLD, UXG, SVM, SSRI, RBY, NXG, NGD, MFN, HL, GSS, GRS, FRG, AZK, CDE
    gold-minerVan Eck’s Market Vector Junior Miners ETF is set for trading to begin on Wednesday, November 11, 2009 under the ticker symbol (NYSE: GDXJ).  The arrival of this ETF couldn’t come at a better time as gold continues to reach new all time highs.  Investors looking to get into the gold craze have found it to be worth investing in gold miners as the current Market Vectors Gold Miners ETF (GDX) has outperformed the SPDR Gold ETF (GLD) by a substantial amount.  See the chart below:
    Chart for SPDR Gold Shares (<a href='http://seekingalpha.com/symbol/gld' title='More opinion and analysis of GLD'>GLD</a>)

    The Market Vectors Junior Miners ETF (GDXJ) will represent the “Junior Gold Miners Index (MVGDXJ)” and have a total net annual operating expense of .60%.  The ETF will represent 38 junior mining and exploration companies that have mining potential.  Here is a look at a few of the key principal investment objective and strategies of the fund that we found in the SEC filing below:  (See The Whole SEC Filing)
    • Investment Objective: The Fund’s investment objective is to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index (the “Junior Gold Miners Index”). For a further description of the Junior Gold Miners Index, see “Junior Gold Miners Index.”
    • Principal Investment Policy: The Fund will normally invest at least 80% of its total assets in securities that comprise the Fund’s benchmark index. This 80% investment policy is non-fundamental and requires 60 days’ prior written notice to shareholders before it can be changed.
    • Indexing Investment Approach: The Fund is not managed according to traditional methods of “active” investment management, which involve the buying and selling of securities based upon economic, financial and market analysis and investment judgment. Instead, the Fund, utilizing a “passive” or indexing investment approach, attempts to approximate the investment performance of the Junior Gold Miners Index by investing in a portfolio of securities that generally replicates the Junior Gold Miners Index.
    • Market Capitalization:The Junior Gold Miners Index is comprised of securities of small-and medium-capitalization companies selected by the Index Provider on the basis of their relative market capitalization weighting in the gold mining and silver mining industries. As of August 28, 2009, the Junior Gold Miners Index included companies with a market capitalization range of between approximately $190 million and $1.25 billion with an average market capitalization of $560 million across the 38 securities in the Junior Gold Miners Index at that date. The market capitalization range of companies in the Junior Gold Miners Index may change at each quarterly rebalance date.
    • The Junior Gold Miners Index (the “Junior Gold Miners Index”) is a rules based, modified capitalization weighted, float adjusted index intended to give investors a means of tracking the overall performance of publicly traded companies of small-and medium-capitalization that are involved primarily in the mining for gold and/or silver. The Junior Gold Miners Index includes common stocks and depositary receipts of U.S. and foreign companies that are involved in mining for gold and/or silver and that are listed for trading on a leading stock exchange.
    • Constituent stocks for the Junior Gold Miners Indexmust have a market capitalization of greater than $150 million on a rebalancing date to be eligible for the Junior Gold Miners Index. Stocks whose market capitalization falls below $75 million as of any rebalancing date will no longer be eligible for the Junior Gold Miners Index. Stocks must have a three-month average daily trading volume of at least $1 million to be eligible for the Junior Gold Miners Index and issuers of such stocks must have traded at least 250,000 shares each month over the last six months.
    Here is a detailed list of the Junior Gold Miners Index (MVGDXJ) we put together using Van Eck’s site as a reference.  (This list is subject to changes and errors)
     
     Market Vectors Junior Gold Miners Index (MVGDXJ) Constituents
     Company NameTicker SymbolETF %Company Website
    1Alamos Gold Inc.(AGI.TO)5.11%alamosgold.com
    2Allied Nevada Gold Corp.  (ANV.A)2.22%alliednevada.com
    3Andean Resources Ltd.(AND.TO)2.99%andean.com.au
    4Aurizon Mines Ltd. (AZK) (ARZ.TO)3.52%aurizon.com
    5Avoca Resources Ltd.(AVO.AX)2.06%avocaresources.com.au
    6Avocet Mining PLC.(AVM.L)0.88%avocet.co.uk
    7Coeur d’Alene Mines Corp.(CDE) (CDM.TO)6.20%coeur.com
    8Colossus Minerals Inc.(CSI.TO)0.89%colossusminerals.com
    9Detour Gold Corp.(DGC.TO)1.38%www.detourgold.com
    10Dominion Mining Ltd.(DOM.AX1.33%dml.com.au
    11European Goldfields Ltd.(EGU.TO)2.13%egoldfields.com
    12Fronteer Develop. Group Inc.(FRG) (FRG.TO)2.37%fronteergroup.com
    13Gabriel Resources Ltd.(GBU.TO)1.55%fronteergroup.com
    14Gammon Gold Inc.(GRS) (GAM.TO)4.32%gammongold.com
    15Gold Wheaton Gold Corp.(GLW.V)1.07%goldwheaton.com
    16Golden Star Resources Ltd. (GSS) (GSC.TO)3.31%gsr.com
    17Great Basin Gold Ltd.(GBG) (GBG.TO)2.54%greatbasingold.com
    18Hecla Mining Co.(HL)3.80%hecla-mining.com
    19Jaguar Mining Inc.(JAG.TO)3.67%jaguarmining.com
    20Kingsgate Consolidated Ltd.(KCN.AX)2.96%kingsgate.com.au
    21Kirkland Lake Gold Inc.(KSI.TO)2.41%klgold.com
    22Lake Shore Gold Corp.(LSG.TO)1.78%lsgold.com
    23Medusa Mining Ltd.(MML.AX)1.22%medusamining.com.au
    24Lingbao Gold Co Ltd.(3330.HK)0.52%lbgold.com
    25Minefinders Corp Ltd.(MFN) (MFL.TO)2.79%minefinders.com
    26New Gold Inc.(NGD) (NGD.TO)6.13%newgoldinc.com
    27Northgate Minerals Corp.(NXG) (NXG.TO)3.11%northgateminerals.com
    28Novagold Resources Inc.(NG) (NG.TO)2.74%novagold.com
    29Real Gold Mining Ltd.(0246.HK)0.80%realgoldmining.com
    30Romarco Minerals Inc. (R.V)1.69%romarco.com
    31Rubicon Minerals Corp.(RBY) (RMX.TO)2.17%rubiconminerals.com
    32San Gold Corp.(SGR.V)3.73%sangoldcorp.com
    33Semafo Inc.(SMF.TO)2.71%semafo.com
    34Silver Standard Resources Inc.(SSRI) (SSO.TO)6.70%silverstandard.com
    35SilverCorp Metals Inc.(SVM) (SVM.TO)3.10%silvercorpmetals.com
    36St Barbara Ltd.(SBM.AX)1.60%stbarbara.com.au
    37US Gold Corp.(UXG) (UXG.TO)1.24%usgold.com
    38Ventana Gold Corp.(VEN.TO)1.21%ventanagold.com

    We believe the Market Vectors Junior Miners ETF (GDXJ) will become a very liquid & popular ETF and are excited to finally see it come to the market.

    Disclosure: No Positions
    Themes: gold miners ETF, junior gold ETF, Van Eck, gold stocks, new etf Stocks: GDX, GLD, UXG, SVM, SSRI, RBY, NXG, NGD, MFN, HL, GSS, GRS, FRG, AZK, CDE
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