Sprott Asset Management LP has launched the Sprott Junior Gold Miners Exchange Traded Fund (ETF) on the New York Stock Exchange. The ETF was created in partnership with ALPS Advisors and Zacks Index Services. The goal of the ETF, according to Sprott, is to provide exposure to the Sprott Zacks Junior Gold Miners Index, which seeks to outperform a passive, market-capitalization representation of junior gold stocks. The index methodology is claimed to be the first factor-based junior gold miners ETF and was developed by leveraging Sprott’s longtime experience as a gold sector investor and Zacks’ research capabilities.
“We are pleased to bring another first to the ETF market with SGDJ,” said John Ciampaglia, head of ETFs at Sprott. “SGDJ provides investors with a more thoughtful strategy by focusing on more advanced stage companies where the historical success rates have been higher. The index also weighs companies differently by using two factors — revenue growth and price momentum — to emphasize companies with stronger growth potential. These factors have historically been strong predictors of long-term stock performance in the junior gold mining sector.”
“Based on the success of our first ETF, the Sprott Gold Miners ETF, we believe there is strong demand in the market for a different way to invest in junior gold miners,” added John Wilson, CEO of Sprott Asset Management. “We have a long history investing in the sector and believe that we have co-developed a compelling new way for investors to invest in junior gold miners using our dynamic, factor-based index methodology.”