The Financial Post reports in its Tuesday edition the Market Vectors Junior Gold Miners Exchange Traded Fund ETF (GDXJ) rebalanced its holdings on Dec. 19 and the changes had a significant impact on several junior gold miners.
The Post's Jonathan Ratner, writing in Trading Desk, says several junior miners -- including Asanko, Rubicon Minerals, Premier Gold Mines, Torex and Midway -- had their weightings reduced, and their share prices declined on heavy volume as a result.
Canaccord Genuity analyst Joe Mazumdar left his speculative buy rating on all five stocks unchanged, telling clients that the downward pressure they are facing is not related to the market or company-specific issues, only the rebalancing.
Some of the producers that were added include Iamgold, Alamos and AuRico.
The additions to the GDXJ boosted its proportion of producers to about 80 per cent of the total holdings, and also increased the weighting in silver to 18 per cent while reducing gold to 82 per cent.
Mr. Mazumdar also highlighted the boost in exposure to U.S.-listed companies at the expense of Canada and Australia.
The rebalanced portfolio is, however, 40 per cent higher than the current value of the June, 2014, portfolio.
© 2025 Canjex Publishing Ltd. All rights reserved.