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Originally posted by BP2137:
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Be aware that Van Eck currently holds in excess of 73m AVZ shares in its REMX ETF. This is a passive fund based solely on the free float capitalisation and tracks an index calculated by MVIS that supposedly is composed of the top 20 rare earth's stocks based on capitalisation. This index is recalculated quarterly and the current quarterly review is based on SP as at 31/5/2022, to be published on 10th June and new index to be implemented 17th June. Van Eck can lend its shares to shorters so may have some of its shares lent out whilst in suspension. How suspension might impact on how the MVIS index is calculated is anybody's guess. Van Eck will not be able to rebalance its AVZ holdings on 17th June if still in suspension so be aware that Van Eck may be a significant player in the market for good or bad when trading resumes. Van Eck may be required to advise its clients on the status of AVZ at rebalance date so keep a look out for their assessment of the current situation.
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It will be interesting to watch the open and days after play out if the Index requires Van Eck to adjust holdings to rebalance accordingly …. Even more so if they have lent them out as you surmise and they can’t rebalance effectively.
