White Paper
A New Era: How Critical Minerals Are Driving the Global Energy Transition
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We believe the unique supply and demand dynamics for critical minerals will underpin potential investment opportunities in the years ahead.
Synopsis
The Energy Transition Depends on Critical Minerals
Critical minerals are essential for the global energy transition as we gradually phase out CO2-intensive energy sources with cleaner sources, including nuclear, solar, wind, hydro and geothermal energy and greater use of electric vehicles (EVs). The reality is that these critical minerals will likely experience significant increases in demand, while developing new supplies will require enormous amounts of capital and time. We believe the unique supply and demand dynamics for critical minerals will underpin potential investment opportunities in the years ahead.
Critical Mineral Miners Poised for Growth
Supply and demand pressures should position miners for an era of sustained investment. From a bird’s-eye view, energy is transitioning away from high-carbon sources, and miners’ share of GDP (gross domestic product) production should expand in line with the share of carbon-free activity. Indeed, mining equities tend to move in line with commodity spot prices over long periods. This trend has begun to emerge post-pandemic, and we expect it to continue.
Important Disclosures
An investor should consider the investment objectives, risks, charges, and expenses of each fund carefully before investing. To obtain a fund’s Prospectus, which contains this and other information, contact your financial professional, call 1.888.622.1813 or visit SprottETFs.com. Read the Prospectus carefully before investing.
Exchange Traded Funds (ETFs) are considered to have continuous liquidity because they allow for an individual to trade throughout the day, which may indicate higher transaction costs and result in higher taxes when fund shares are held in a taxable account.
The funds are non-diversified and can invest a greater portion of assets in securities of individual issuers, particularly those in the natural resources and/or precious metals industry, which may experience greater price volatility. Relative to other sectors, natural resources and precious metals investments have higher headline risk and are more sensitive to changes in economic data, political or regulatory events, and underlying commodity price fluctuations. Risks related to extraction, storage and liquidity should also be considered.
Shares are not individually redeemable. Investors buy and sell shares of the funds on a secondary market. Only market makers or “authorized participants” may trade directly with the fund, typically in blocks of 10,000 shares.
The Sprott Silver Miners & Physical Silver ETF is new and has limited operating history.
Sprott Asset Management USA, Inc. is the Investment Adviser to the Sprott ETFs. ALPS Distributors, Inc. is the Distributor for the Sprott ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc.