Loading ...The Market Vectors Junior Gold Miners ETF (or GDXJ) is an ETF administered by Van Eck and created to replicate the Global Junior Gold Miners Index which is a basket of small-cap gold exploration, development and production companies. The GDXJ tries to maintain an average market cap of its holdings above $150 million.
According to recent filings, the ETF’s largest holdings are Centamin, IAMGOLD, Hecla and AuRico, but included in the 69 total equity positions are exploration names such as Bear Creek Mining and Focus Minerals.
Needless to say, the ETF which mirrors the junior resource markets, hasn’t performed well.
Year-to-date, it is down 18.18% but in the past 3 months the ETF is down over 40%.
Recently, the GDXJ was re-balanced in order to maintain their average market capitalization hurdle.
Given the performance of the underlying equities, the pre-revenue, development stories that have become less and less liquid were sold in favor of more liquid, higher market capitalization names such as IAMGOLD, AuRico and Alamos.
As a result, some of these development companies have been crushed by this relentless selling.
Asanko, Premier Gold, Torex, Rubicon and Midway were among them. Shares in those companies are down 23%, 25%, 22%, 17% and 15%, respectively over the past 30 days.
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