Sprott expands ETF suite with actively managed metals fund

[Ben Graham]

Sprott Inc. (NYSE, TSX: SII) has launched a new actively managed exchange-traded fund (ETF) that seeks to provide exposure to companies in the mining sector, especially those associated with strategic metals.

The Sprott Active Metals & Miners ETF debuted on the NASDAQ on Wednesday under the ticker symbol “METL”. It opened the session at $19.92 per share and traded as high as $20.09.

Sprott said the fund will follow a value-oriented and contrarian approach, offering investors long-term capital appreciation in the entire mining lifecycle — focusing on miners, recyclers, and royalty and streaming companies that are deemed to be “undervalued”.

The firm said the METL portfolio managers have several decades of collective experience in the industry and have the flexibility to pick stocks with exposure to a wide range of metals.

“Each year, Sprott’s multi-disciplinary investment team conducts approximately 200 management meetings within the mining sector and also assesses asset potential, identifies challenges and explores geologic opportunities through up to 30 mining site visits annually,” Sprott’s CEO Whitney George stated in a press release.

A key part of the METL portfolio will be companies involved or invested in the production of strategic metals that are poised to benefit from structural demand across key growth sectors such as renewable energy, electric vehicles, nuclear power and infrastructure.

“Sprott is well positioned to create a dynamic portfolio of the miners of essential materials that span copper, uranium, silver, steel, lithium and many other metals that are critical for energy independence, national security and growth industries,” George added.

METL becomes the latest addition to Sprott’s expanding ETF suite. It combines the expertise of active management with the flexibility of an ETF, which includes daily transparency, liquidity and potential tax efficiency.