As GDXJ is a popular ETF, I wanted to share this story. It's a brief read, but the punchline is the holdings inside GDXJ have gotten so large that the issuer was running into size problems. Everyone's favorite, JNUG, is in the story as well.
"The GDXJ ETF has become so popular, the VanEck ETF holding company is bumping up against 20% ownership in some of these junior Canadian gold miners. From a regulatory perspective, it is difficult to go above the 20% threshold without triggering automatic takeover laws. Also, from a tax perspective, there are some arcane laws pertaining specifically towards ETFs that VanEck was also battling due to the composition of the index."
Submitted April 20, 2017 at 07:37AM by trillionplanets http://ift.tt/2o7hEXE
