Big Gold Miners ETF To Stick With Current Index

| About: VanEck Vectors (GDX)

By The ETF Professor

Following some previously announced changes to its underlying index, the Market Vectors Gold Miners ETF (NYSEARCA:GDX) will continue tracking the NYSE Arca Gold Miners Index.

Last month, it was revealed that the NYSE Arca Gold Miners Index would begin including more American depositary receipts and global depositary receipts while barring companies with market values below $750 million.

The NYSE Arca Gold Miners Index "is a modified market capitalization-weighted index, and provides exposure to publicly traded companies worldwide involved primarily in gold mining, representing a diversified blend of small-, mid- and large- capitalization stocks," according to the GDX web page.

GDX is the largest gold miners ETF with $6.4 billion in assets under management. Goldcorp (NYSE:GG), Barrick Gold (NYSE:ABX) and Newmont Mining (NYSE:NEM) are the ETF's top-three holdings and combine for about 35 percent of the fund's weight. Changes to the index are expected to take place after September 20.

"After reviewing the improved methodology, we are pleased with the planned changes and expect them to be beneficial for investors," said Brandon Rakszawski, product manager with Market Vectors, in a statement. "By moving to allow for the inclusion of non-U.S. listed companies, we believe the Index will better capture the global nature of the gold mining industry. Additionally, by increasing the minimum market cap for inclusion in the Index, the overall liquidity of GDX holdings may be improved."

Market Vectors also issues the Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ). GDXJ, which has $1.8 billion in AUM, is benchmarked to an in-house index.

Disclaimer: Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

About this article:

Want to share your opinion on this article? Add a comment.
Disagree with this article? .
To report a factual error in this article, click here