Original, independent, thought leadership
« Back to Glossary Index

Investment advisor:  Sprott Asset Management LP

Launch date:  February 1, 2023

Expense ratio:  0.65%

Investment objective:
The Sprott Energy Transition Materials ETF (the “Fund”) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Energy Transition Materials Index (the “Index”).

Fundamental investment strategy:
The Fund will, under normal circumstances, invest at least 80% of its total assets in securities of the Index. The Index is designed to track the performance of companies that derive at least 50% of their revenue and/or assets from (i) mining, exploration, development, production, recycling, refining, or smelting of energy transition materials (“Energy Transition Mining Companies”); (ii) investments in energy transition materials that represent all or a significant portion of their assets; (iii) earning energy transition materials royalties; and/or (iv) supplying energy transition materials (together with Energy Transition Mining Companies, “Energy Transition Companies”). The Index generally consists of from 100 to 120 constituents. Under normal circumstances, the Fund will invest at least 80% of its net assets, plus the amount of borrowings for investment purposes, in Energy Transition Mining Companies. This investment policy may be changed without shareholder approval, upon 60 days’ notice to shareholders. 2 The universe of eligible index components includes exchange-listed equity securities of companies that have or expect to have a significant portion of their business operations related to energy transition materials. Energy transition materials are metals and raw materials that are essential to the transition to a less carbon intensive economy. These materials are critical for the energy transition from fossil fuels to cleaner energy sources and technologies and include, but are not limited to uranium, copper, lithium, nickel, cobalt, graphite, manganese, rare earths, and silver. Such companies are identified through the use of a proprietary selection methodology that may include a review of industry publications, sell side research, and fundamental research, as well as meetings with management. Companies in this eligible universe are included in the Index subject to the following restrictions:

Sustainable investing approach: 
The universe of eligible index components includes exchange-listed equity securities of companies that have or expect to have a significant portion of their business operations related to energy transition materials. Energy transition materials are metals and raw materials that are essential to the transition to a less carbon intensive economy. These materials are critical for the energy transition from fossil fuels to cleaner energy sources and technologies and include, but are not limited to uranium, copper, lithium, nickel, cobalt, graphite, manganese, rare earths, and silver. Such companies are identified through the use of a proprietary selection methodology that may include a review of industry publications, sell side research, and fundamental research, as well as meetings with management. Companies in this eligible universe are included in the Index subject to the following restrictions:               Stock issuers without revenue or for which revenue is an inappropriate characteristic may include, but is not limited to, junior mining companies involved in the development and exploration of energy transition materials and exchange traded products (ETPs) that invest all or a significant portion of their assets in energy transition materials. Junior miners are in the development and exploration phase and are on the lookout for land with a higher chance for uncovering large mineral deposits

 

 

Notes of Explanation:  For mutual funds, expense ratio may vary by share class and launch date applies to the launch date of the earliest share class.  Sources:  Fund prospectus or other offering document, as disclosed.  

 

 

« Back to Funds Directory