The combination of a middling Process Pillar rating and a Below Average People Pillar rating limit  Sprott Nickel Miners ETF to a Morningstar Medalist Rating of Neutral.  The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The team managing the passive strategy earns a Below Average People Pillar. The strategy gets an Average Process Pillar rating.  Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The strategy's parent organization earns the firm an Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst.

Analyst Rating

Nicolet Bankshares Inc

Columbia India Consumer ETF

Era Group

Lifezone Metals Ltd

Centene

Anthem

Nickel Asia Corporation

Castellum Inc

First Trust Chindia ETF

SentinelOne

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Sprott Nickel Miners ETF earns an Average Process Pillar rating. The most substantial contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Low expenses across its parent firm's funds, whose fees, on average, rank in the middle quintile of their respective category, also influence the rating. The pattern of low costs at the firm indicates that it is focused on delivering strong results for investors. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 43%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Nickel Miners Index.  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, or production of nickel (“Nickel Mining Companies”); (ii) investments in nickel that represent all or a significant portion of their assets, and and/or (iii) supplying nickel. The fund is non-diversified. 

 The portfolio is overweight in basic materials by 51.5 percentage points in terms of assets compared with the category average, and its financial services allocation is similar to the category. The sectors with low exposure compared to category peers are energy and industrials, underweight the average by 26.9 and 10.6 percentage points of assets, respectively. The portfolio is positioned across 26 holdings and is relatively concentrated. In particular, 78.0% of the fund’s assets are housed within the top 10 holdings, as opposed to the category’s 25.3% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 55% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

Sprott’s team receives a Below Average People Pillar rating. The team is supported by the combined average five-year excess return of each manager, which indicates that the funds they manage have beat an average manager. However, the rating is limited by the parent firm's five-year success ratio of 30%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 50% also weakens the team.

Below Average

People

Sprott's focus on a niche area of the market and some mixed characteristics lead to an Average Parent rating.
This firm has undergone several changes in the past five years. In 2017, the firm spun off the non-precious-metals vehicles it had launched over the prior decade, and founder Eric Sprott retired. Getting back to its roots, the firm has since consolidated one of Canada's gold exchange-traded funds into its own and acquired a gold ETF, a silver ETF, and a U.S.-based, actively managed open-end mutual fund focused on gold-mining stocks. Sprott has recently expanded its lineup to include critical minerals, namely a uranium ETF and a physical platinum and palladium trust, but the firm remains largely focused on precious metals.
A relatively deep investment team manages this niche lineup. In 2022, 25-year industry veteran John Ciampaglia took over as Sprott Asset Management's CEO from Whitney George after George became Sprott Inc.'s CEO. That said, George remains involved in investment management, and an experienced 12-person team remains, including John Hathaway and Doug Groh, who came aboard as part of the firm's 2020 acquisition of Tocqueville's gold strategies. These resources could give the firm an edge, but key-person risk remains given the long tenures of Hathaway and George. Further, the firm's niche focus creates potential for large swings in both assets and performance.

Parent

Sprott Nickel Miners ETF

NIKL tracks an index of nickel related companies around the globe. Securities are selected based on revenue and weighted by market-cap.

BHP Billiton

Electra Battery Materials Corp

Glencore PLC

Anglo American PLC

Nickel spot prices were significantly higher the last month. Nickel market news - US & UK prohibit import of Russian-origin aluminum, copper, and nickel. The U.S. Loans Program Office has added supply/production of critical minerals to the list. Nickel company news - Ardea, Sumitomo Metal Mining (SMM) and Mitsubishi Corporation [MC] to form a JV to develop the Kalgoorlie Nickel Project (KNP) – Goongarrie Hub.

Nickel Miners News For The Month Of April 2024

USCF Aluminum Strategy Fund

iShares Copper and Metals Mining ETF

iShares MSCI Global Gold Miners ETF

Global X Silver Miners ETF

Wall Street is on track for its worst month in 2024. The decline has been broad-based.

Mining ETFs Win in Turbulent April With Double-Digit Gains

Nickel spot prices were lower the last month and remain very low causing distress to the nickel miners. Nickel market news - Macquarie - Nickel market surplus just 36,000t this year. Nickel prices may soon recover from Indonesia-induced slump. Nickel company news - Vale to build another $2B HPAL plant in Indonesia. BHP has stood down around a quarter of the workforce building its $1.7B West Musgrave Nickel Project.

Nickel Miners News For The Month Of March 2024

Nickel spot prices were higher for the last month. Morgan Stanley suggests the possibility nickel (price) is close to a trough “looks increasingly likely". Nickel market news - EU, US to align global minerals push against China's supply grip. US moves to restore stockpiling ‘panic button' in EV metals fight with China. Nickel company news - BHP writes down value of Australian nickel assets after nickel price collapse. Eramet achieves a new record for nickel ore volumes in Indonesia (+72%) in 2023.

Nickel Miners News For The Month Of February 2024

Nickel spot prices were flat for the last month. Nickel market news - Macquarie forecasts surpluses for the nickel market all the way out to 2027. Fastmarkets - Surge in nickel production capacity to lead to structural oversupply. Nickel company news - BHP warns on the impact of low nickel prices. IGO decides to put Cosmos Nickel Project into care and maintenance.

Nickel Miners News For The Month Of January 2023

Nickel spot prices were flat for the last month. Low nickel prices leads to BHP issuing dire warning on nickel mines. 2024 nickel supply is set to outpace growth, which will suppress prices and exert pressure on producers' margins. In nickel company news - Panoramic Resources collapses into Voluntary Administration. Premium Nickel Resources drills 10.45 metres of 1.45% NiEq.

Nickel Miners News For The Month Of December 2023

Nickel spot prices were lower the last month. Nickel market news - The nickel market is expected to exceed USD 59.14 Billion by 2028, showing a 7.3% CAGR. Nickel company news - Huayou, Vale commit to Indonesian Huali MHP project. Nickel Industries raises A$942,700,000 for 19.99% equity investment by PT Danusa Tambang Nusantara.

Nickel Miners News For The Month Of September 2023

Sprott Lithium Miners ETF

The government plays a pivotal role in providing the necessary funding to help kick-start and maintain projects for critical minerals mining. This is imperative as the world becomes more heavily reliant on alternative energy sources.

Government Subsidies Should Boost These Critical Minerals ETFs

Sprott Energy Transition Materials ETF

Rich in critical minerals like nickel, Indonesia is ready to start working with United States on an agreement to supply the nation with these minerals in order to meet increasing demand for electric vehicles.

Indonesia Ready to Work on Critical Minerals Agreement With U.S.

Nickel spot prices were lower the last month. Nickel market news - BHP: "Turning to the longer term, we believe that nickel will be a substantial beneficiary of the global electrification mega–trend." Nickel company news - Glencore announces US$1.2 billion share buyback program. Horizonte Minerals' Araguaia Nickel Project now 65% complete.

Nickel Miners News For The Month Of August 2023

Sprott Junior Copper Miners ETF

China was recently in the throes of a pandemic-related economic malaise, and that, in effect, could put pressure on industrial metals as demand weakens. An ING report authored by Ewa Manthey highlighted the macroeconomic outlook for industrial metals like copper and nickel as it related to China's economic challenges.

China's Stimulus Measures Will Weigh on Industrial Metals

With the transition to clean energy running in full gear, the minerals and metals powering the EV battery supply chain are in focus.

Looking For A Pure-Play Nickel ETF? Sprotts' NIKL Fund Holds 28 Miners, Including One Supplier To Tesla, GM - Sprott Nickel Miners ETF (NASDAQ:NIKL)

While the demand for critical minerals is expected to rise in the next decade, it will need additional tailwinds in the form of capital investments, according to a Reuters article. The global transition to alternative energy sources is the primary catalyst for this rise in demand for critical minerals.

Capital Investment Necessary to Avoid Critical Minerals Shortage

Platinum Group Metals

Nickel spot prices were lower last month. Nickel market news - BMI forecasts a nearly 2 million tonne nickel supply gap by 2030 and says nickel requires the largest critical mineral investment of $66 billion. Nickel company news - Nickel Industries conditional 19.99% placement to PT United Tractors Tbk raises A$943m. Poseidon Nickel updated Black Swan disseminated Resource of 26.3Mt at 0.72% nickel.

Nickel Miners News For The Month Of June 2023

Nickel spot prices were significantly lower the last month. Nickel market news - Nickel faces huge supply glut of Class 2 nickel as Indonesian output booms; however Class I nickel demand is very strong with LME inventory levels declining. Nickel company news - Vale imminent sale of 10% of its base metals business, reported to be worth $US20-25B. Glencore & Li-Cycle announce joint study for battery recycling hub.

Nickel Miners News For The Month Of May 2023

Nickel spot prices were flat the last month. Nickel market news - INSG forecasts 2023 nickel surplus amid increase in Class 2 supplies. Fitch says nickel could average $US32,000/t in years to come.

Nickel Miners News For The Month Of April 2023

The production of electric vehicles (EVs) is near the forefront of the energy transition, and automaker Tesla is well aware of this. The electric automaker's CEO and founder Elon Musk recently made a plea to mine more nickel as demand for EVs rise.

Elon Musk Makes Plea to Mine More Nickel

Nickel spot prices were lower the last month. Sprott launches Nickel Miners ETF. Nickel market news - EU Critical Raw Materials Act 10% of critical raw materials mined in Europe by 2030. Ford CEO says lithium and nickel are the key constraining commodities.

Nickel Miners News For The Month Of March 2023

The global push to net zero opens a plethora of opportunities for investors to take advantage of the transition to alternative energy sources. One area is nickel mining, which is essential in developing clean energy technology.

An ETF to Consider as Nickel Will Play a Key Role in the Energy Transition

Plus, AdvisorShares is set to close two more funds by the end of the quarter.

Odds & Ends: First Nickel Miners ETF Debuts

Sprott Uranium Miners ETF

Sprott Asset Management announced the launch of the Sprott Nickel Miners ETF (Nasdaq: NIKL), an ETF focused on nickel mining companies that provide a mineral necessary for the clean energy transition.

News for Sprott Nickel Miners ETF ETF (NIKL)