Sprott Launches 4 Mineral, Metals ETFs

Sprott Launches 4 Mineral, Metals ETFs

The funds’ debut follows a projected boom in electric vehicles.

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Reviewed by: Shubham Saharan
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Edited by: Shubham Saharan

Sprott Inc. added to its commodity product lineup on Thursday with four new offerings targeting energy transition.  

Toronto-based Sprott, which manages $1.3 billion throughout its exchange-traded fund products, is adding to its ETF listings, focusing on giving investors “exposure to critical minerals essential to the generation, transmission and storage of cleaner energy,” according to a company statement

The four funds list on the Nasdaq and their expense ratios are as follows:  

These four products follow the launch of the firm’s $13.4 million Sprott ESG Gold ETF (SESG) in August and are a result of last year’s “global wake-up call regarding the importance of energy transition and security,” according to John Ciampaglia, CEO of Sprott Asset Management.  

“Due to years of underinvestment, demand for many energy transition materials now outstrips supply,” Ciampaglia said in the statement. “We believe mining companies focused on energy transition minerals are well positioned to benefit from the significant investments that will be required over the coming decades.” 

He added that the ETFs target raw materials critical to electrification—an energy transition process that involves energy generated by fossil fuels being replaced by energy produced from sustainable sources such as wind, solar and hydroelectric power—and transition to electric vehicles. 

ETFs focused on propelling clean energy and the movement to electric vehicles have gained momentum in recent months alongside the industry’s growth potential. According to data provider Sustainalytics, the size of the electric vehicle industry is projected to more than quadruple, hitting $1.3 trillion in 2028, compared with the $287 billion seen last year.  

The funds’ debut in U.S. markets also follows a smattering of launches targeting the category, including the USCF Sustainable Battery Metals Strategy Fund (ZSB), which launched last month.  

 

Contact Shubham Saharanat[email protected]       

Shubham Saharan is a markets reporter at etf.com. Before joining the company, she reported for Bloomberg and the Financial Times. Saharan is a graduate of Barnard College of Columbia University.