I believe GDXJ holds a significant % of funds in big brother GDX as a means of soaking up massively increased inflow funds ( see Delatta posts over on NST thread ) which if all pushed into juniors would result in excessive shareholdings, perhaps even triggering regulations on making the same offer to all existing shareholders, not at all what an ETF wants
Thru their holding in GDX, GDXJ indirectly already holdS low levels of NST, EVN etc, Under new rules, fund inflows will enable higher direct stakes in these larger, previously GDXJ-ineligable miners, taking buying pressure off the smaller.
So does this partly explain why recently, NST, EVN go up while RMS and other juniors go down ? But Delattas data shows that VanEck have not been active yet in rebalancing.....June start.
Also, with large $ inflows being the cause of problems, to me seems that NST etc would be added to GDXJ without the fund selling juniors like RMS, SLR etc. These would go down as % of total fund as larger miners added, but not their absolute $ / number of shares, so maybe GDXJ cant be blamed for price drop on these juniors ?
I often baffle myself with my own misguided theories, so be warned.
RMS Price at posting:
45.5¢ Sentiment: Hold Disclosure: Held
(20min delay)