The new Sprott Gold Miners ETF (NYSE: SGDM) was launched in July. SGDM focuses on major mining and streaming companies and offers investors an innovative new way to gain exposure to gold equities.
The Sprott ETF provides all the aspects of traditional ETFs that investors like — a low management fee (0.57%), passive management, exposure to a diversified basket of stocks, and full disclosure of holdings on a daily basis — with an alternative indexing methodology for selecting the holdings of the portfolio.
John Ciampaglia, who led the development of the ETF at Sprott Asset Management LP, said SGDM tracks the Sprott Zacks Gold Miners Index, the first index to use qualitative company factors to select and weight gold stocks. He said:
“Traditional gold miner indexes select their holdings in a very simple way: stocks are ‘market-cap weighted,’ which means the biggest companies in the sector are also the largest holdings in their portfolio.”