(Kitco News) - Gold and silver prices continue to see unprecedented gains as investor demand remains strong. Although the mining sector has underperformed compared to the commodities, one of the world’s largest precious metals funds sees solid potential.
On Thursday, Sprott announced the launch of a new mining-focused exchange-traded fund, the Sprott Active Gold & Silver Miners ETF (Nasdaq: GBUG). This is the firm’s first actively managed ETF.
Sprott said its new ETF aims to provide long-term capital appreciation by investing in shares of gold and silver-focused companies engaged in exploring, developing, and mining, and royalty and streaming companies engaged in financing gold and silver assets.
“Gold and silver mining stocks have historically been correlated with bullion, but in recent years, they’ve lagged behind the price of the physical metals,” said John Hathaway, CFA, Managing Partner, Sprott, and Senior Portfolio Manager, Sprott Asset Management USA, Inc. “Gold and silver mining stocks could offer significant catch-up potential.”
This is the firm’s second precious metals equity-focused ETF launched in the past two months. In January, Sprott launched its Sprott Silver Miners & Physical Silver ETF (Nasdaq: SLVR).
Sprott also has two other mining ETFs, the Sprott Gold Miners ETF (NYSE: SGDM) and the Sprott Junior Gold Miners ETF (NYSE: SGDJ).
“Given the operational complexities of mining, investors may benefit from an active ETF strategy focused on long-term business fundamentals and growth potential,” said Whitney George, Chief Executive Officer of Sprott. “The Fund’s investment team is experienced. With more than 100 years of collective experience in metals and mining, the team conducts more than 200 management meetings annually, along with periodic site visits to mining operations around the globe.”
