Sprott introduces smart beta gold miners ETF

Jul 17th, 2014 | By | Category: Commodities

Sprott Asset Management, a Toronto-headquartered precious-metals specialist, has announced the launch of the Sprott Gold Miners ETF (SGDM).

Sprott introduces smart beta gold miners ETF

John Wilson, CEO of Sprott.

Listed on the NYSE and created in partnership with ALPS Advisors and Zacks Index Services, the ETF tracks a smart beta strategy index called the Sprott Zacks Gold Miners Index.

The index, which leverages Sprott’s experience as a gold investor and Zacks’ research capabilities, is factor-based and seeks to outperform a purely passive, market-capitalization weighted representation of gold stocks.

It uses a transparent, rules-based methodology that is designed to identify 25 US-listed mid-capitalization gold – and, to a lesser degree, silver – stocks with the highest historical beta to the spot price of gold. Each stock’s weighting in the index is adjusted based on its quarterly revenue growth on a year-over-year basis and the quality of its balance sheet, as measured by long-term debt to equity.

John Ciampaglia, Chief Operating Officer of Sprott, said: “The market is ready for an innovative new way to gain exposure to gold stocks. To our knowledge, the Sprott Gold Miners ETF is the first gold equities ETF to be based on a proprietary, factors-based index strategy. We have a strong distribution relationship in the United States with ALPS and look forward to working closely with them to introduce the Sprott Gold Miners ETF to investors.”

John Wilson, CEO of Sprott, added: “We are committed to developing innovative new products in areas where we can provide value through our expertise and experience. Along with our three Sprott Physical Bullion Trusts, this latest offering now gives us four NYSE-listed investment funds that are easily accessible to investors.”

The fund has an expense ratio of 0.57%.

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