NYSE Euronext will be making enhancements to the methodology of the NYSE Arca Gold Miners Index (GDM), the preeminent index covering the gold mining industry. The changes will be…
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effective at the next rebalance of the index after the close of Friday, September 20, 2013. The enhancements are designed to better represent the universe of gold mining companies while maintaining the ease of investment currently offered by the index. Additionally, these changes will be implemented with the intention of reducing and minimizing turnover.
The main enhancements include expanding the universe to include non-U.S. listed companies and excluding companies with less than $750 million in market capitalization from being considered for inclusion. This will allow the index to maintain or increase exposure to the gold mining industry while reducing exposure to those companies with lower levels of liquidity. Additional enhancements include the use of ADRs/GDRs when appropriate and the implementation of a buffer zone around the $750 million market cap floor to reduce turnover during quarterly rebalances.
Source: ETFWorld – Nyse Euronext
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