VanEck is set to ditch the long-standing index underlying its gold miners ETF for an alternative provided by subsidiary MarketVector Indexes.
The $2bn VanEck Gold Miners UCITS ETF (GDX) has tracked the NYSE Arca Gold Miners index since its March 2015 inception but it will transition to the MarketVector Global Gold Miners index in September, according to an official shareholder notice.
The fund’s overall investment policy and strategy will not change, the proposal said, but the free float weighting methodology and other features of the new index “enhances investability and liquidity representation”.
The ETF’s total expense ratio will remain at 0.53% and the holdings are not expected to differ dramatically after the change. Both indices currently show the same top five companies, albeit in a slightly different order.
In June, VanEck announced it was making the same alteration for its $17.8bn US-listed gold miners ETF landing a double blow for the New York Stock Exchange’s (NYSE) flagship benchmark.
VanEck’s US and European junior gold miners ETFs already track indices operated by MarketVector Indexes, a wholly owned subsidiary.
VanEck and MarketVector Indexes declined to comment further. NYSE did not respond to a request for comment.
Gold miner ETFs have been on a tear this year to continued strength in the gold price as well as relatively low input costs, most notably in the shape of energy. GDX is up 77.8% so far this year, according to data from Trackinsight.
Gold itself has enjoyed another sparkling year but it has been consolidating in recent months after ETF flows helped power the metal $3,500/oz for the first time. It is currently trading at $3,383/oz, up 34.8% year-to-date.
By Toby Lawes
Originally published on ETF Stream
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