|Moderated By: TheSlowLane -- (Moderated) -- Started: 10/24/2009 10:27:20 PM Revision History|
From the Van Eck web site: The Junior Gold Miners ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the Market Vectors Junior Gold Miners Index.
The Index provides exposure to a global universe of publicly traded small- and medium-capitalization companies that generate at least 50% of their revenues from gold and/or silver mining, hold real property that has the potential to produce at least 50% of the company’s revenue from gold or silver mining when developed, or primarily invest in gold or silver. The Fund will normally invest at least 80% of its total assets in companies that are involved in the gold mining industry. As such, the Fund is subject to, among others the risks of investing in international equities and small- and mid-cap mining companies. Many companies may not have begun to generate material revenues and operate at a loss, contributing to greater volatility, lower trading volume and less liquidity than larger companies.
Commentary on GDXJ
18. I spoke to Van Eck funds yesterday. John Van Eck began the company in 1955. I want you to think carefully about this man. He has a Harvard MBA. The period of 1955-1968 was arguably the absolute pinnacle of American economic performance, and John started a growth fund with perfect timing, in that year 1955.
19. Then in 1968 he started the first American gold fund. He moved the bulk of the assets from his growth fund into the gold fund. Again, perfect timing to catch the gold bull market of 1968-1980.
20. Now Van Eck funds, as some in the community know, is starting the Van Eck Gold Juniors ETF. I could be wrong, but I believe the Van Eck timing, again, is absolutely perfect! The ultimate investment at the ultimate time has been filed with the securities commission, the weightings and stocks are chosen, it's just a matter of waiting for the Gman to approve it. I see no reason for it not being approved. Van Eck runs the GDX seniors/intermediates gold stocks ETF. We're not talking about Bozo the Gold Clown here, Van Eck is a real pro and I believe he's about to hit the ultimate home run.
21. As the juniors go on a tear that could make the high-tech bull market look like a bear, I believe "stock picking" will become even more irrelevant with the junior golds that it was with the high techs. The gold juniors ETF could see hedge fund participation. If so, all bets are literally off as to the upside, when you are talking about funds leveraging their investments in junior golds at 20 to 1, 30 to 1, 50 to 1. And more. Full article
ETF Daily News:
"The launch is expected to take place sometime before the end of this year, and this event will help to make the junior exploration sector even more popular than it is today. It is our contention that this sector will surpass the excitement that was created by the upstart dot-com companies of the late 1990s, since this time the companies involved represent real value," Degraaf Reports. Full article
From the GDXJ SEC filing
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 Index must 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. Only shares that trade on a recognized domestic or international stock exchange may qualify (e.g., National Stock Market stocks must be “reported securities” under Rule 11Aa3-1 of the Exchange Act. Similar criteria and standards apply to stocks with foreign listings).
The Junior Gold Miners Index is calculated and maintained by Structured Solutions AG on behalf of 4asset-management GmbH. 4asset-management GmbH is not affiliated with the Fund. Index values are calculated daily and are disseminated every 60 seconds between the hours of approximately 9:30 a.m. and 4:15 p.m. (Eastern time).
The Junior Gold Miners Index is calculated using a capitalization weighting methodology, adjusted for float, which is modified so as to ensure compliance with the diversification requirements of Subchapter M of the Internal Revenue Code. The Junior Gold Miners Index is reconstituted quarterly, at the close of business on the third Friday in a quarter-end month (i.e., March, June, September and December) and companies are added and/or deleted based upon the Junior Gold Miners Index eligibility criteria. Companies with recent stock exchange listings, i.e., recent initial public offerings, may be added to the Junior Gold Miners Index on a quarterly basis, provided the companies meet all eligibility criteria and have been trading for more than 10 trading days. The share weights of the Junior Gold Miners Index components are adjusted also on a quarterly basis (every third Friday in a quarter-end month). [emphasis added]
New Gold Miner ETF Shines
Van Eck Files for Junior Miners ETF
Investors Get Excited For The Launch Of Van Eck’s Market Vectors Junior Gold Miners ETF
Van Eck Plans a Mining ETF for the Bold
Gold Constituents Now Available
A Golden Star is (about to be) Born
GDXJ page at Van Eck web site
GDXJ Fact Sheet (pdf)
GDXJ Components (pdf)
GDXJ components (Google Docs spreadsheet)
The Investment Case for Junior Gold Miners (pdf)
SEC Filing - fund prospectus
Regulators examine the Market Vectors Junior Gold Miners ETF prospectus (photo)
Junior Gold Mining Stocks (Google Docs spreadsheet)
Senior Gold Mining Stocks ETF(Google Docs spreadsheet)
Copyright © 1995-2013 Knight Sac Media. All rights reserved.