$GDXJ #gold December adds still outperforming

From BMO: Quantitative Execution Services
Monday, October 20^th  

GDXJ gold December adds still outperforming

 

Since last week's announcement the GDXJ junior gold additions have outperformed by ~5%.   The index change will cause the addition of larger gold companies into the GDXJ ETF in December.  

 

See up to 15 new additions to GDXJ

We currently see 13 eligible additions and 2 close to the threshold.   The actual event is far-off but considering the sheer size it is not surprising there is already impact.  The GDXJ will need to buy ~10% addition floats in December or approximately U$800M.  

 

Will like behave like the GDX rebalance in 2013?

This index change reminds us when the GDX Gold ETF allowed for non-US listed companies to be added in September 2013.  It was also a significant index change and we saw the adds outperform from announcement (August 2013) until several weeks past the rebalance.  

 

See below for chart of GDXJ adds vs GDXJ and table with company specific performance.