I've found quite a bit about the changeover now I know to look...

I've found quite a bit about the changeover now I know to look for it.

There are some details are in page 71 of the 1 March Global X prospectus - https://www.globalxfunds.com/content/files/commodities-prospectus.pdf.  That covers what GlobalX is doing about the indexing changes.​

Solactive runs the indexes, and this is what they have to say.
https://www.solactive.com/announcem...obal-uranium-total-return-index-31-july-2018/
The important thing is that the new index started in Feb1 2018, and the old index finishes in July31 2018.  There is also a transition index which slowly shifts between the two between Feb and July 2018.

About silex dropping out things are crystal clear:
Members of the old index https://www.solactive.com/?s=uranium&indexmembers=DE000SLA0UR5
members of the new index https://www.solactive.com/?s=Solactive Global Uranium &Nuclear_Components_Total_Return_Index=&indexmembers=DE000SLA4825

I have these comments about the prospectus from Global X above:
GlobalX said it would have a 2 phase process.  Step 1 is move to the transition index.  Step 2 is to move to the new index.

They said they would commence phase 1 in Q1 2018 and continue for 6 months.  regarding more details they said this:

"To protect the Global X Uranium ETF from the potential for harmful “front running” by traders, the exact timing of the index changes will not be disclosed to investors".  Q1 2018 finishes this week, so we are likely to have seen this already.

Unfortunately some news articles have different dates
https://www.prnewswire.com/news-rel...hange-for-uranium-etf-300615486.html[/BCOLOR]
This says it is expected to happen in Q2 2018, no sooner than 2 April.  However surely the prospectus on the global X website is more definitive than a news article??  Even if the news article is 2 weeks more recently.

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My take:
I suspect the move to the transition index is what we saw with the high volume and price drop on the 22nd.  In this case there will be future SLX monthly sales as the transition index starts to look more like the new index and less like the old one.

The transition index is recalculated on 10 business days before the end of every month, and then those calculations put in place on the 1st business day of the month.  A different theory is that the drop on the 22nd could also be GlobalX not rebalancing at predictable times like that, so we may have seen them adjust their holdings in between when the changes were calculated and when they should officially come into effect.

Theory 3 is of course that wood-duck is more informed about this and the SP will drop on the 2nd of April (I've done about 60 minutes of research, so this is far from unlikely).


The good news in all this is that I read that we would rejoin the index if our market cap was over $US75M (currently $A58M) during a future rebalance.  So if silex is successful then we will rejoin the index and any price drops from this should be temporary.

Not sure what my sentiment should be.  I'm going to sleep on it (and hold at least overnight).​