GBUG: Sprott’s Gold and Silver Miners ETF Is Actively Managed

Sprott Asset Management’s recently launched Sprott Active Gold & Silver Miners ETF (GBUG) is the only active ETF focused on gold and silver miners. *  

Sprott specializes in precious metals, critical materials, and their miners. GBUG represents the first time the full benefit of Sprott’s specialized portfolio management team has been brought to its exchange traded funds.  

There are two major reasons GBUG may be well-timed. First, gold and silver miners usually track the rise of gold and silver bullion prices. However, they’re lagging notably (especially gold miners), which means there may be notable “catch-up potential.”  

^{Source: Bloomberg as of 12/31/2024. Gold is measured by the GOLDS Comdty Spot Price and gold equities by the NYSE Arca Gold Miners Index (GDM). You cannot invest directly in an index. Past performance is no guarantee of future results.} 

The other reason having active management in the gold/silver mining space now is that there’s a wide dispersion in returns for mining equities. So, a team that has deep, first-hand knowledge of gold and silver mining can be better positioned to select mining companies that have the best fundamentals and management, and that may be undervalued.  

What Is the GBUG ETF?   

Sprott Active Gold & Silver Miners ETF (GBUG) is an actively managed ETF that aims to provide long-term capital appreciation by investing in shares of gold- and silver-focused companies that are engaged in exploring, developing and mining; or royalty and streaming companies engaged in the financing of gold and silver assets. The investment strategy of the Fund is value-oriented and contrarian.  

Why Invest in GBUG Now? 

• Actively Managed by a Global Leader: Sprott Asset Management has over four decades of specialized leadership in precious metals and mining investments.  
• Value of Active Management in Miners: Given the operational complexities of mining operations, investors may benefit from an active strategy focused on long-term business fundamentals and/or growth potential.  
• Miners May Be Undervalued Versus Bullion: Gold and silver mining stocks are historically correlated to the underlying bullion but are not always in sync. ** In recent years, miners have lagged the price of bullion, creating significant catch-up potential.
• Flexibility of an Active ETF: GBUG combines the daily transparency, liquidity, and potential tax efficiency of an ETF with the expertise of active management.  

Bottom Line on GBUG, Investing in Precious Metals Now 

With gold and silver prices rising amid economic uncertainty, inflation concerns, and central bank policies, now may be an opportune time for investors to consider an ETF like GBUG. By actively managing a portfolio of gold and silver mining stocks, Sprott aims to capitalize on opportunities in the sector while navigating risks such as operational challenges and geopolitical factors.  

For investors looking to gain exposure to precious metals equities with professional oversight, GBUG offers a potential way to participate in the upside of mining stocks without having to select individual companies. 

However, investors should be aware that precious metals and mining stocks can be highly volatile, influenced by commodity price swings, interest rate changes, and global economic conditions. While gold and silver are often seen as safe-haven assets, mining equities can experience large price fluctuations and may not always move in tandem with metal prices.  

As with any investment, it’s crucial for investors to assess their risk tolerance, time horizon, and portfolio diversification strategy before investing in GBUG. Conducting thorough research or consulting a financial advisor can help determine if this ETF aligns with their long-term objectives.   

* Based on Morningstar's universe of Precious Metals Sector Equity ETFs as of 3/12/2025. 

** Source: Bloomberg as of 12/31/2024, as measured by the NYSE Arca Gold Miners Index (GDMNTR), which is intended to track the overall performance of companies involved in the gold mining industry.

An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Sprott Active Gold & Silver Miners ETF Statutory Prospectus, which contains this and other information, visit https://sprottetfs.com/gbug/prospectus, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing.

The Sprott Active Gold & Silver Miners ETF is new and has limited operating history. Investors in the Fund should be willing to accept a high degree of volatility in the price of the Fund’s shares and the possibility of significant losses. The Fund will be concentrated in the gold, silver and precious metals mining and related industries. As a result, the Fund will be sensitive to changes in, and its performance will depend to a greater extent on, the overall condition of the gold, silver and precious metals industry, highly dependent on the price of gold and silver bullion. The gold, silver and precious metals industry can be significantly affected by competitive pressures, central bank operations, events relating to international political developments, the success of exploration projects, commodity prices, adverse environmental developments and tax and government regulations. An investment in the Fund involves a substantial degree of risk. The Fund is not suitable for all investors. The Fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund.

The Fund adviser’s judgments about the growth, value, or potential appreciation of an investment may prove to be incorrect or fail to have the intended results, which could adversely impact the Fund’s performance relative to its benchmark.

Shares are not individually redeemable. Investors buy and sell shares of the Sprott Active Gold & Silver Miners ETF on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 10,000 shares.

Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual Fund operating expenses, affect the Fund’s performance.

Sector weightings are determined using the Bloomberg Industry Classification Standard (“BICS”).

Sprott Asset Management USA, Inc. is the Investment Adviser to the Sprott Active Gold & Silver Miners & Physical Silver ETF.  ALPS Distributors, Inc. is the Distributor for the Sprott ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc.

®Registered trademark of Sprott Inc. 2025.