We've been here before so it's worth mentioning. For some strange reason this stock was included in an index quite some time ago and, while it might have seemed like a good thing, as it does now, it came with a few caveats.
The rebalancing these funds go through are gamed by anyone who knows of them. It effectively punishes performers and rewards losers to maintain fund percentages on a quarterly, bi-annual, or annual basis, depending upon the fund prospectus.
Further, the initial buy in presents a false demand that, if you don't know where it's coming from, appears positive until it stops - on a dime.
Finally, exclusion from an index is a brutal pounding without form or discretion.
So, be warned. Get to know this fund, when it rebalances as well as it's distribution. The extra exposure is good, but it is definitely a loose cannon to keep an eye on.
Inclusion in S&P mining index
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