Weakness in Sprott Gold Miners ETF's Process and People Pillar ratings limits this strategy to a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy gets a Below Average Process Pillar rating, after recently downgrading from Average. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant overweight position in quality exposure and an underweight in volatility exposure compared with category peers. High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And low volatility exposure is rooted in stocks that have a lower standard deviation of returns. The team managing this passive strategy earns a Below Average People Pillar rating. 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

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10X Genomics

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 Gold Miners ETF earns a Below Average Process Pillar rating. The process benefits from tracking 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. However, the rating is limited by the fund's mediocre long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process has struggled over that period. The parent firm's five-year risk-adjusted success ratio of 43% also holds the process back. The measure indicates the percentage of a firm's funds that survived and beat 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 results that correspond (before fees and expenses) to the performance of the Solactive Gold Miners Custom Factors Total Return Index.  The underlying index aims to track the performance of gold companies located in the U.S. and Canada whose common stocks or American Depositary Receipts ("ADRs") are traded on the Toronto Stock Exchange and the New York Stock Exchange and NASDAQ. The fund will normally invest at least 90% of its net assets in securities that comprise the index. The fund is non-diversified. 

 The portfolio has allocations in its top two sectors, basic materials and technology, that are similar to the category. The sectors with low exposure compared to category peers are utilities and financial services; however, the allocations are similar to the category. The portfolio is composed of 34 holdings and is relatively top-heavy. Of the strategy's assets, 71.0% are concentrated within the top 10 holdings, as opposed to the typical peer's 36.3%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 58% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Below Average

Process

Sprott’s team earns a Below Average People Pillar rating. The team benefits from the combined average three-year excess return of each manager, which suggests that the funds they manage have exceeded an average manager. However, the rating is weakened 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 subpar success ratio suggests that the firm could do better across its fund lineup. The parent firm's five-year retention rate of 50% also limits the team.

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.

Average

Parent

Sprott Gold Miners ETF

SGDM tracks an equity index of gold mining firms. Firms with higher revenue growth, lower debt to equity and higher free cash flow yield receive more weight.

Sprott Physical Gold Trust

With artificial intelligence (AI) capturing investor imagination these days, gold's recent rally might be a mere blip on the radar. A Sprott Special Gold Report from John Hathaway, managing partner at Sprott Inc. and Sprott Asset Management senior portfolio manager, could be hinting that more upside could be on the near horizon.

Investor Indifference Could Give Way to More Gold Upside

While historical price patterns aren't always an accurate indicator of directional fortune telling, it could be a potential sign that gold could be in for another breakout. The precious metal's rise has been in tandem with a strong stock market as the S&P 500 has been touching new highs in the first quarter of 2024.

Current Gold Price Pattern Suggests a Breakout is Coming

As geopolitical tensions rise around the globe, capital markets are seeing a repatriation of gold. And the precious metal's price continues to climb.

More Countries Repatriating Gold Amid Geopolitical Tensions

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The price of gold continues to rally on market anticipation of Fed interest rate cuts in the latter half of the year. Given the potentially constructive outlook for the yellow metal in the second half, gold bugs don't want to miss the opportunity in gold miners this year.

As Gold Reaches Fresh Highs, Consider Gold Miners

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Gold approaches a new all-time high, driven by expectations of upcoming U.S. interest rate reductions. It soared above $2,100 an ounce on Mar 4, edging closer to the record high of $2,135.39.

Gold ETFs Jump on Rising Hopes for June Rate Cuts

A retreating dollar is exactly what gold needed to put the precious metal back into the investment spotlight. Hotter-than-expected inflation in January pushed the yellow metal below the $2,000 mark.

Retreating Dollar Puts Gold Back in the Spotlight

Gold Miners ETFs offer a convenient and diversified way to invest in the gold market without the hassle of physical gold. The Sprott Gold Miners ETF focuses on larger-sized gold companies with high growth potential. SGDM provides exposure to a wide range of gold mining companies, offering diversification and liquidity for investors.

SGDM: Potential For A Golden Run

Gold has long been known as a safe haven and diversifying asset that investors turn to in times of economic and geopolitical distress. Last year was just such a year, with gold drawing the attention of investors of all stripes.

Why Was 2023 Such a Good Year for Gold?

Gold prices have been in lockstep with stock prices to start the new year, retreating from the highs of 2023. However, price dips in the precious metal offer investors an opportunity to take advantage, as gold still looks appealing in the long-term investment horizon.

Gold Dips in the Short Term, But Still Appealing Long Term

Sprott Junior Uranium Miners ETF

Sprott Uranium Miners ETF

Uranium and gold topped the best-performing commodities in metals during 2023 and that rally could extend itself through 2024. As such, investors may want to add exposure to their portfolios for further diversification in an uncertain election year.

Uranium, Gold Could Dominate 2024 Commodities Market

Given its year-to-date price increase at just over 11% for the year, a gift of gold could be the proverbial gift that keeps on giving if it continues its upward trajectory heading into the new year. Even at is current level, investors continue to purchase the precious metal.

Investors Continue to Purchase Gold as 2023 Winds Down

There are less than a week left until the beginning of 2024, and many investors and advisors are reevaluating their allocations and plans for the new year. A lot of different asset classes are currently being discussed as possible places to invest in 2024, but one that hasn't garnered much attention is gold.

Why Advisors Should Keep Their Eyes on Gold in 2024

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The German stock market has gone parabolic in an exceptionally strong move, after meandering over the summer months with sub-par economic releases. The surface reason for this division is that the vast majority of German earnings are not driven by the domestic economy but by their multinational operations.

There Could Be A Simple Explanation For The Dax Moonshot Move

Gold has been pushing above the $2,100 price mark recently. But the precious metal's rally could still be in its early stages.

Despite Record Highs, Gold Rally Could Be in Early Stages

Gold prices continue to push to higher heights, instilling a bullish sentiment among the capital markets as the expectation of interest rates falling isn't hindering the rally. Other factors are also helping the metal to rally, opening opportunities in other areas like mining.

Bullish Sentiment for Gold Remains as Prices Continue Rising

Gold is on the verge of closing a monthly candle above $2,000 per ounce, signaling a breakout. Gold miners have historically outperformed gold during uptrends, making them a potential opportunity for investors. The Sprott Gold Miners ETF (SGDM) has generally lagged behind other gold miner ETFs in performance.

SGDM: A Bet On Active Managers

Inflation might be putting a damper on holiday spending, but not when it comes to stifling the gold rally. The precious metal has certain factors behind it that should buoy prices even if inflation begins to recede.

Decreasing Inflation Shouldn't Stifle Gold Prices, Says Strategist

Diligent investors who seek technical and fundamental confirmation prior to allocating capital to a particular investment may want to give gold a closer look. The yellow metal prices may be flashing bullish signals from a technical standpoint.

Technical Analytics and Fundamentals Look Bullish for Gold

Higher-for-longer interest rates paired with geopolitical factors are increasing demand for gold. Costco stores are witnessing this demand for the precious metal amid a safe haven scramble.

Gold Fever Hits Costco Stores as Safe Haven Demand Rises

The S&P 500 falling into correction territory has allowed gold to prosper amid a safe haven scramble as higher-for-longer interest rates and geopolitical risks continue to keep investors on edge.

October's Gold Rally Pushes the Metal Past Stocks

Despite any short-term technical pullbacks, that status of gold as a safe haven asset should keep it elevated through the rest of 2023. As such, now could be as good a time as any to get exposure to the precious metal.

Safe Haven Demand Should Keep Gold Elevated Through 2023

In the past week, the price of physical gold has continued to rise. According to Kitco, on October 16, 2023, the price of gold was valued at around $1,922 an ounce, and it began Monday morning just above $1,970.

Gold's Rally Spreads Into Gold Miner ETFs

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Once again, gold ETFs have earned a place of prominence among the top-performing ETFs. Gold strategies may be picking up interest and returns as a defensive play as uncertainty grows around a 2024 recession.

Top Performing ETFs: Gold ETFs Lead Once More

Now may be the time to get gold exposure, especially if history repeats itself. The precious metal could offer investors a discount at current prices before an eventual run higher.

Now May Be the Right Time to Buy Into Gold

Gold price jumped 3% on Oct 13, logging in the best week in seven months amid growing tensions in the Middle East and steady inflation.

News for Sprott Gold Miners ETF ETF (SGDM)