It's a possibility eshmun. What tends to happen is the traders front run the index rebalancing and try and offload their stock at higher prices. Large holders who want to exit also use the liquidity to offload. From memory the RSG substantial holder ICM used the September rebalancing in 2016 to dump a chunk, I think when RSG was added to the GDX.
Some brokers actually publish specific research about rebalances and trading opportunities. A few years ago there was probably better trading opportunities, but when everyone became aware of it the trade lost its appeal.
On Friday 8 March the new index weightings will be announced. On Friday 15 March Van Eck will have to acquire/dispose of stakes. I think DCN is unlikely to make it this time anyway.
It's a possibility eshmun. What tends to happen is the traders...
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