Ann: 2017 Financial Year Results, page-131

First 131 Last

Share
Profile

Follow
Trade67

564 Posts.

16/09/17

18:40

Post #: 27266967
Share

Originally posted by nordesmic ↑

Not really good or bad. The ETF just does what it does. They buy or sell to meet the stock weightings in the portfolio. They don't do any analysis of companies to work out these portfolio weights, it's purely arithmetic based on market cap.

What I have found following this for a few years now is that the rebalancing days often act as turning points for a share price. This makes sense because traders often front run the share price ahead of the rebalance. Once they're out of it then the shares can trade more freely.

I also have a theory that since the June rebalance, which involved a one off more significant recomposition of the ETF, the GDXJ ETF has not had the same impact on trading as it once did. Last year SLR and RMS both got a rocket from the GDXJ purchasing shares. Now the stocks have been down weighted they don't attract the same flow of funds. Plus there has been a general stagnation of funds in the GDXJ despite gold doing well. So you have less flow into the ETF and less of that flow going into SLR than previously. I'm not sure where this speculative hot money is going but it is not jumping into this particular ETF at the moment.

Since there aren't large buyers willing to fill the void left by the GDXJ the share price has gone sideways.

Expand

Thanks mate for taking your time to explain it in details.

SLR Price at posting: 42.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

CXM

'Taking money from the market': Garbage giant cleans up as this week's Hot Stock tip

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

There are more pages in this discussion • 2 more messages in this thread...

First 131 Last

Add SLR (ASX) to my watchlist

Ann: 2017 Financial Year Results, page-131

Top Stories

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

'Taking money from the market': Garbage giant cleans up as this week's Hot Stock tip

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025