I’m not sure, didn’t go through all details but I read in Waf’s threads from a reputable poster this :
It was announced last Thursday that the GDX ETF is going to change its tracking index in September. WAF is not a constituent of the new index and therefore GDX will likely have to sell down its entire holding in WAF.
GDX currently holds ~40M shares of WAF.
I think this is the main factor accelerating the current fall in the share price, not helped by the weak lead-in the day prior from the mining code alignment.
Van Eck won’t be exiting until September when the index changes.
Yeah I think they’re fairly used to managing these events in advance through whatever proxies and cross trades etc. Difference this time of course it’s happening in 10 names all at once. Could be ~US$500M of selling out of all those in aggregate.
The logic behind the move isn’t clear and really favours the North American gold market over the ASX. And that’s counter to performance over last few years. I’d imagine a few ASX companies would be pissed given some have justified corporate moves partly on the basis of index addition.
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