If it is not brutal, why would you repair it? The GDX is much up, but Vaneck changes horses middle current.
The gold price reached a record high of US $ 3,707.34 per ounce on Wednesday (17 September), shortly after the decision of the US Federal Reserve to take its first reduction to interest rates since December 2024.
That raised the price of the precious metal 40 percent since the beginning of 2025.
It was a long time ago, but it seems that gold mine shares finally respond to the absorption of gold prices.
The Vaneck Gold Miners ETF (Arca: GDX), whose participations include the largest global gold mine companies, rose from Thursday (September 18) by 103.54 percent years to date.
The GDX has followed the price and yield performance of the NYSE ARCA Gold Miners Index since its foundation in May 2006. That ended on Friday (September 19) when it switched to the Global Gold Miners Index market vector.
What does the GDX index change for gold investors mean?
It may seem to be contrary to the global investment manager Vaneck to change the index for the popular GDX GDX $ 20.5 billion, but there are many good reasons.
The Switch was planned A few months ago in combination with household, this is a routine part of the management of the Exchange-Traded Fund (ETF). The switch to the Market vector Global Gold Miners Index takes place at the same time that the company normally would reinstall the weight of its positions in the underlying effects of GDX.
And the movement is logical. Market vector is not only a Vaneck subsidiary, but it is also based on free-matted market-weight-weighted methodology that many large stock indexes now use.
“By only concentrating on shares available for public trade, exclusively those of insiders or limited market, this method offers a more accurate reflection of market dynamics than the entire market capitalization method,” ” Explains InvestopediaNote that this approach is used by indexes such as the S&P 500 (IndexSP: .inx).
It seems that Vaneck joins the rest of the global financial community, which has been taken away from full market-cap weight methods as used by the NYSE Arca Gold Miners Index.
So what can GDX investors expect from this change?
They will probably not immediately see much difference, in addition to small adjustments to how some shares in the fund are weighed, or which stock list is used for companies with multiple stock lists.
For exampleMajor Miner Newmont (TSX: NEM, NYSE: NEM, ASX: NEM) – which is one of the top five of the ETF – will be weighed at 6.95 percent of 12.99 percent.
Map via Chatter.
In the long term, however, GDX can see a boost in performance, including less volatility and better liquidity, because the dead weight is cut away and the largest companies are no longer concentrated at the top. This could be a major growth option for GDX investors, especially if this bull is performed on gold and gold mine stocks.
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Publication of securities: I, Melissa Pistilli, has no direct investment interest in a company mentioned in this article.
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