Toronto-based Sprott Asset Management has launched a new physically backed gold ETF in the US with the fund’s underlying bullion holdings sourced exclusively from ethical miners and refiners.
The ETF holds gold exclusively sourced from ethical miners and refiners.
The Sprott ESG Gold ETF (SESG US) has been listed on NYSE Arca with a sponsor fee of 0.38%.
The fund reflects the performance of the price of gold by holding physical gold bullion that meets certain environmental, social, and governance (ESG) standards determined by Sprott.
Sprott identifies North American gold mining companies with proven, highly transparent ESG track records. The screening process is intended to ensure that the ETF’s underlying gold is mined and refined through verified supply chains that meet recognized ethical standards in terms of protecting the environment and combatting money laundering, terrorist financing, and human rights abuses.
Eligible gold miners will also undergo additional due diligence conducted at individual mine sites to ensure they are meeting local ESG best practices.
The ETF’s gold holdings consist of fully allocated unencumbered physical gold bullion that is held by the Royal Canadian Mint and that maintains compliance with the Mint’s Responsible Sourcing Requirements.
Commenting on the launch, John Ciampaglia, CEO of Sprott Asset Management, said: “We created SESG to fill a gap in the marketplace with a gold fund focused on trust, transparency, and traceability. Our goal is to answer a number of key questions for investors: where does my gold come from, who produced it, and was it produced sustainably by recognized ESG leaders? Through our partnership with the Royal Canadian Mint and our relationships with leading Canadian gold producers, Sprott is uniquely positioned to offer a convenient way for investors to own physical gold that aligns with their ESG values.”
The ETF’s introduction follows one month after the July 2022 launch of the Franklin Responsibly Sourced Gold ETF (FGLD US). FGLD, which is listed on NYSE Arca with an expense ratio of 0.15%, is the only other gold ETF in the US that is dedicated to ethical sourcing criteria.
The cheapest gold ETF in the US is the $5.1 billion SPDR Gold MiniShares Trust (GLDM US) which costs 0.10%, while the $1.0bn iShares Gold Trust Micro ETF (IAUM US) is also priced at 0.15%.