GDXJ will need to sell $3.0B
The GDXJ index methodology changed to allow the inclusion of larger cap companies, such as: First Majestic, Coeur Mining, New Gold, Oceanagold, Northern Star, Hecla Mining, Detour Gold, Sibanye Gold, Acacia, Eldorado, Centamin, Tahoe, Pan American Silver, Yamana Gold, Zhaojin Mining, Evolution Mining, Gold Fields, Buenaventura. The index methodology change is expanding the GDXJ investable universe from ~$30B float cap to $70B float cap. The rebalance will create a massive funding trade and will significantly impact existing names in the index. With these additions, the GDXJ will need to sell $3.0B worth of its existing holdings to buy the new additions. This is significant when one considers the GDXJ ETF has $5.5B in AUM.