"Integra Mining fell 8.3 per cent after Van Eck Associates announced Friday they were removing Integra from their US-listed Market Vectors Junior Gold Miners index, effective December 24. "
I wondered if Van Eck holds both SLR and IGR, then when they merge they will be overweight SLR and taking action now to address that. Now I’m thinking that doesn’t sound quite right.
The new entity will have a mc of the two combined so needs a larger weighting. Based on that they shouldn’t need to sell anything.
My first guess was that maybe the rebalance is simply because IGR has nearly doubled in sp since the merger although if it was due to that, it only makes sense to sell around half.
Still can’t make full sense out of it but as mentioned earlier, considering it is an ETF and not a managed fund, then it should have nothing to do with any fundamental or technical view on IGR or SLR. So I guess the reason is not that important, but if anyone hears of the reason, I would like to hear it anyway.
SLR Price at posting:
$3.21 Sentiment: Buy Disclosure: Held
