Frequently Asked Questions (FAQs)

The Sprott Active Gold & Silver Miners ETF is listed on Nasdaq® under the symbol “GBUG.” Investors can purchase GBUG in a brokerage account or by contacting their financial advisor.

Sprott Active Gold & Silver Miners ETF (Nasdaq: GBUG) is an actively managed ETF that aims to provide long-term capital appreciation by investing in shares of gold- and silver-focused companies that are engaged in exploring, developing and mining; or royalty and streaming companies engaged in the financing of gold and silver assets. 

A company is a gold- or silver-focused company if it earns at least 50% of its revenue or has at least 50% of its assets engaged in exploring, developing or mining gold or silver.

The investment strategy of the Fund is value-oriented and contrarian.

The Fund is actively managed. Investment decisions are made by a team comprised of John Hathaway, MBA, CFA, Senior Portfolio Manager; Maria Smirnova, MBA, CFA, Senior Portfolio Manager & Chief Investment Officer; Shree Kargutkar, MBA, CFA, Senior Portfolio Manager; Justin Tolman, MBA, Senior Portfolio Manager and Economic Geologist; and Victor Huwang, MBA, CRC, Director, U.S. Operations. These professionals are members of the Sprott Investment Team, which offers demonstrated expertise in the active management of precious metals equities. The investment team has more than 100 years of collective experience and has cultivated strong relationships within the mining sector. It conducts over 200 management meetings annually. Key criteria for assessing management include familiarity, credibility, alignment of interests and the required skill sets for different development stages. 

Sprott Asset Management USA, Inc. is the investment adviser to the Sprott Active Gold & Silver Miners ETF. ALPS Advisors, Inc. is the sub-adviser, and ALPS Fund Services, Inc. serves as the administrator. ALPS Distributors, Inc. is the Distributor for the Sprott Active Gold & Silver Miners ETF and is a registered broker-dealer and FINRA Member. Additionally, State Street Bank and Trust Company serves as the custodian and transfer agent.

GBUG, an actively managed ETF of gold and silver mining stocks, seeks to provide the following advantages:

• Stock selection based on our 100+ years of collective experience investing in miners with prospects of strong growth or takeover potential. Variability of individual company performance within the mining sector is considerable, so stock picking can potentially add substantial value.
• The investment team has cultivated strong relationships within the mining sector. It conducts over 200 management meetings annually. Key criteria for assessing management include familiarity, credibility, alignment of interests and the required skill sets for different development stages.
• The investment team assesses capital needs, timelines, financing strategies, detailed valuation metrics combined with dynamic modeling for sensitivity testing to multiple variables including prices, costs, tax regimes, royalty and streaming obligations, and debt obligations.

There is no guarantee these objectives will be met. Past performance is no guarantee of future results. 

The team follows a comprehensive and repeatable process.

Management

• Credibility: Focus on projects with management teams that have a demonstrated track record.
• Familiarity: Conduct >200 management meetings per year, including meetings with Boards of Directors.
• Governance and Alignment of Interests: Compensation that aligns management interests with shareholders.

Mines and Minerals

• Technical Analysis: Geology, size potential, mineralogy, infrastructure, land access.
• Scenario analysis: To determine technical feasibility and upside potential.
• Boots on the Ground: Up to 30 site visits per year.

Money

• Capital structure and funding requirement analysis.
• Analysis of potential free cash flow generation and net present value.
• Analysis of sensitivity to commodity prices.

Political Risk

• Sprott proprietary “Heat Map”: Ranking of mining jurisdictions from favorable to unacceptable.
• Ongoing monitoring of changing political risks and fiscal regimes.

Other Factors

• Social: Community relations, human rights, diversity and inclusion, health and safety.
• Environmental: Sustainable investment, water management, renewable energy use, modern mining practices.

There is no guarantee that investment process objectives will be met. 

Investors with a value orientation who seek long-term capital appreciation potential in gold and silver mining equities, but who prefer active management may be interested in investing in GBUG. With a three to five-year outlook on each holding, the portfolio management team seeks compelling companies that they believe have the potential to deliver positive returns and long-term value. 

• Actively Managed by a Global Leader – Sprott Asset Management has over four decades of specialized leadership in precious metals investments.
• Value of Active Management in Miners – Given the operational complexities of mining operations, investors may benefit from an active strategy focused on long-term business fundamentals and/or growth potential.  
• Miners May be Undervalued Versus Bullion – Gold and silver mining stocks are historically correlated to the underlying bullion, but are not always in sync.* In recent years, miners have lagged behind the price of bullion, creating significant catch-up potential.
• The Flexibility of an Active ETF – GBUG combines the daily transparency, liquidity, and potential tax efficiency of an ETF with the expertise of active management.

*Source: Bloomberg as of 12/31/2024, as measured by the NYSE Arca Gold Miners Index (GDMNTR), which is intended to track the overall performance of companies involved in the gold mining industry.

Sprott believes there is a positive outlook for both gold and silver mining equities. 

Gold Mining Equities

Gold bullion gained 27.22% in 2024 to close at $2,635 per ounce, while gold mining equities gained 10.64%* on average in 2024, with a wide variance in individual performance.

The gold price has been driven higher by multiple factors including unprecedented central bank buying and declining interest rates.

Gold equities have historically provided leverage to the gold price, making them a compelling investment choice.

Despite recent gains, we believe gold mining equities are very undervalued relative to the gold price. It's likely that improved fundamentals have yet to be recognized by investors.

Silver Mining Equities

Silver bullion gained more than 20% in 2024, boosted by its duality as a precious and industrial metal, and has faced five consecutive years of market deficits due to growing industrial demand and stagnant supply.

Silver has unique and valuable physical properties and is essential in the expansion of green technologies, including solar energy, 5G networks, AI and automotive electronics, which are driving demand.

Silver has lagged gold, with the gold-to-silver ratio above its historical average, indicating potential catch-up gains for silver prices.

Historically, silver equities have outperformed physical silver during bull markets, making them a compelling investment choice. 

Opinions are subject to change without notice. Past performance is no guarantee of future results.

* Bloomberg as of 12/31/2024, as measured by the NYSE Arca Gold Miners Index (GDMNTR), which is intended to track the overall performance of companies involved in the gold mining industry.

The Sprott Active Gold & Silver Miners ETF expects to declare and distribute all its net investment income, if any, to shareholders as dividends at least annually and on a pro-rata basis. The Fund may distribute such income dividends and capital gains more frequently, if necessary, to reduce or eliminate federal excise or income taxes on the Fund.

Please reach out to your Sprott representative at 888.622.1813 or or invest@sprott.com for additional questions.

Past performance is no guarantee of future results. You cannot invest directly in an index.