Popular gold miner index retools to allow non-U.S.-listed firms

|By:, SA News Editor

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.