New Sprott Gold Miners ETF Looks to Capitalize on Strong Global Demand for Gold
Fund Delivers Exposure to Long-Time Gold Investor’s Stock-Picking Methodology
DENVER--(BUSINESS WIRE)--ALPS, a DST Company focused on asset servicing and asset gathering, today announced the launch of the Sprott Gold Miners ETF, a new fund designed to deliver exposure to the Sprott Zacks Gold Miners Index (NYSE:ZAXSGDM).
“Not only have gold mining stocks underperformed since April 2011, many companies have reduced their costs in response to a lower gold price.”
The Index uses a transparent, rules-based methodology designed to identify 25 gold stocks that historically have the highest beta to the spot price of gold, with each stock’s weighting in the index adjusted based on its quarterly revenue growth and long-term debt to equity. The stock selection and index weighting criteria were co-developed by Sprott Asset Management, a leading gold sector investor.
ALPS Advisors, which acts as the named advisor to several alternative investment strategies including MLPs, REITs, Commodities, and Listed Private Equity, will serve as the Fund’s Investment Advisor.
“The objective of the Sprott Gold Miners ETF is to offer a beta growth opportunity to a higher gold price,” says Tom Carter*, President of ALPS Advisors. “Not only have gold mining stocks underperformed since April 2011, many companies have reduced their costs in response to a lower gold price.”
As a principal investment strategy, the Fund will normally invest at least 90% of its net assets in component securities that comprise the Sprott Zacks Gold Miners Index. The Index is rebalanced on a quarterly basis to incorporate the latest financial data into the screening process.
ALPS provides customized asset servicing and asset gathering solutions to the financial services community through an entrepreneurial culture based on the commitment to “Do Things Right.” Founded in 1985, ALPS continues to actively promote all of its various business segments, from asset servicing through ALPS Fund Services, Inc. to asset gathering through ALPS Portfolio Solutions Distributor, Inc., ALPS Distributors, Inc. and ALPS Advisors, Inc. Headquartered in Denver, with offices in Boston, New York, Seattle, and Toronto, ALPS, a wholly‐owned subsidiary of DST Systems, Inc., today represents more than 450 employees, over 200 clients, and an executive team that has been in place for more than 19 years. For more information about ALPS and its services, visit www.alpsinc.com. Information about ALPS products is available at www.alpsfunds.com.
About Sprott Asset Management LP
Sprott Asset Management LP (“Sprott”) is an alternative investment manager that specializes in precious metals and natural resource investing. Headquartered in Toronto, Canada, the mining finance center of the world, Sprott manages several billion dollars in precious metals investments, including the Sprott Physical Bullion Trusts which trade on the NYSE Arca.
Important Disclosures & Definitions
An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contain this and other information, please contact your financial professional or call 1.855.215.1425. Read the prospectus carefully before investing.
Sprott Gold Miners ETF shares are not individually redeemable. Investors buy and sell shares of the Sprott Gold Miners ETF on a secondary market. Only market makers or “authorized participants” may trade directly with the Fund, typically in blocks of 50,000 shares.
The Fund is not suitable for all investors. There are risks involved with investing in ETFs including the loss of money. 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 will be concentrated in the gold and silver mining industry. 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 and silver mining industry. Also, gold and silver mining companies are highly dependent on the price of gold and silver bullion. These prices may fluctuate substantially over short periods of time so the Fund’s Share price may be more volatile than other types of investments.
Funds that emphasize investments in small/mid cap companies will generally experience greater price volatility.
Funds investing in foreign and emerging markets will also generally experience greater price volatility.
There are risks involved with investing in ETFs including the loss of money.
Diversification does not eliminate the risk of experiencing investment losses.
ETFs are considered to have continuous liquidity because they allow for an individual to trade throughout the day.
The Sprott Gold Miners ETF is a new product with a limited operating history.
The Product(s) is not sponsored, endorsed, sold or promoted by ZACKS INVESTMENT MANAGEMENT, INC. (“Licensor”) Licensor makes no representation or warranty, express or implied, regarding the advisability of investing in securities generally or in the Product(s) particularly or the ability of the Index to track general market performance. Licensor’s only relationship to the Licensee is the licensing of the Index which is determined and composed by Licensor without regard to the Licensee or the owners of the Product(s). Licensor has no obligation to take the needs of the Licensee or the owners of the Product(s) into consideration in determining or composing the Index. Licensor shall not be liable to any person for any error in the Index nor shall it be under any obligation to advise any person of any error therein.
The Fund is not sponsored by Sprott. Sprott makes no representation or warranty, express or implied, to the owners of the Fund or any member of the public regarding the advisability of investing in securities or commodities generally or in the Fund particularly and does not guarantee the quality, accuracy or completeness of the Underlying Index or any Underlying Index data included herein or derived therefrom and assume no liability in connection with their use. The Underlying Index is determined and composed without regard to the Adviser or the Fund. Sprott has no obligation to take the needs of the Adviser, the Fund or the shareholders of the Fund into consideration in connection with the foregoing. Sprott is not responsible for and has not participated in the determination of pricing or the timing of the issuance or sale of the Shares of the Fund or in the determination or calculation of the NAV of the Fund. Sprott has no obligation or liability in connection with the administration or trading of the Fund.
Sprott does not guarantee the accuracy and/or completeness of the Underlying Index or any data included therein, and Sprott shall have no liability for any errors, omissions, or interruptions therein. Sprott makes no warranty, express or implied, as to results to be obtained by the Adviser, the Fund, Fund shareholders or any other person or entity from the use of the Underlying Index or any data included therein. Sprott makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the Underlying Index or any data included therein. Without limiting any of the foregoing, in no event shall Sprott have any liability for any special, punitive, indirect, or consequential damages (including lost profits) arising out of matters relating to the use of the Underlying Index, even if notified of the possibility of such damages.
ALPS Portfolio Solutions Distributor, Inc. is the Distributor for the Sprott Gold Miners ETF.
Beta is defined as a sensitivity measure based on regression against the spot gold price movement during the trailing 36 months.