Market Vectors Gold Miners ETF (GDX) will continue to track the NYSE Arca Gold Miners Index after the methodology of determining Index constituents and weightings is updated by the index provider, NYSE Euronext, in late September. GDX has sought to track the Index since the Fund’s inception in 2006 and has since become the world’s largest gold miner-focused exchange-traded fund.
“After reviewing the improved methodology, we are pleased with the planned changes and expect them to be beneficial for investors”
“After reviewing the improved methodology, we are pleased with the planned changes and expect them to be beneficial for investors,” said Brandon Rakszawski, product manager with Market Vectors. “By moving to allow for the inclusion of non-U.S. listed companies, we believe the Index will better capture the global nature of the gold mining industry. Additionally, by increasing the minimum market cap for inclusion in the Index, the overall liquidity of GDX holdings may be improved.”
The new methodology underlying the Index was announced by NYSE Euronext on August 9, 2013 and will be effective on September 20, 2013, coinciding with the rebalance of the Index after close of markets that day.
GDX, part of Market Vectors’ family of Hard Assets ETFs, had total net assets of $6.3 billion as of August 31, 2013. The fund has a gross expense ratio of 0.52 percent and a net expense ratio of 0.52 percent, with the fund’s expenses capped at 0.53 percent until May 1, 2014. Cap excludes certain expenses, such as interest.
About Market Vectors ETFs
Market Vectors exchange-traded products have been offered since 2006 and span many asset classes, including equities, fixed income (municipal and international bonds) and currency markets. The Market Vectors family totaled $21.8 billion in assets under management, making it the seventh largest ETP family in the U.S. and tenth largest worldwide as of June 30, 2013
Market Vectors ETFs are sponsored by Van Eck Global. Founded in 1955, Van Eck Global was among the first U.S. money managers helping investors achieve greater diversification through global investing. Today, the firm continues this tradition by offering innovative, actively managed investment choices in hard assets, emerging markets, precious metals including gold, and other alternative asset classes. Van Eck Global has offices around the world and managed approximately $29.6 billion in investor assets as of June 30, 2013.
Gold- and silver-related investments are subject to risks including bullion price volatility, changes in world political developments, competitive pressures and risks associated with foreign investments. In times of stable economic growth, the value of gold, silver and other precious metals may be adversely affected. Mining companies are subject to elevated risks, which include, among others, competitive pressures, commodity and currency price fluctuations, and adverse governmental or environmental regulations. In particular, small and mid-cap mining companies may be subject to additional risks including inability to commence production and generate material revenues, significant expenditures and inability to secure financing, which may cause such companies to operate at a loss, greater volatility, lower trading volume and less liquidity than larger companies. Investors should be willing to accept a high degree of volatility and the potential of significant loss.