Frequently Asked Questions (FAQs)

The Sprott Critical Materials ETF is listed on Nasdaq^® under the symbol “SETM.” Investors can purchase SETM in a brokerage account or by contacting their financial advisor.

The Sprott Critical Materials ETF (SETM) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Critical Materials™ Index.

The Nasdaq Sprott Critical Materials Index is designed to track the performance of a selection of global securities in the critical materials industry. Critical materials (“materials”) are raw metals and minerals that are essential to meeting growing global energy demand that comes from rapidly emerging technologies, improvements to energy infrastructure and the transition to a less carbon-intensive economy. For the purpose of this Index, these materials include uranium, copper, lithium, nickel, cobalt, graphite, manganese, rare earths and silver.

The Index combines Sprott’s deep expertise in critical materials investing with Nasdaq’s index construction capabilities. To be included in the Nasdaq Sprott Critical Materials™ Index, a security’s issuer must be classified by Sprott as a critical materials producer, developer, explorer, refiner, smelter, recycler or royalty company; or as a company that invests all or a significant portion of its assets in critical materials or engages in supplying critical materials.

Eligibility Requirements

• Be listed as a common stock or depositary receipt on an approved exchange.
• Be classified by Sprott as a Critical Materials Producer, Developer, Explorer, Refiner, Smelter, Recycler, Royalty Company, or a company that invests in or supplies critical materials.
• Have an Intensity Score of at least 50%, based on the percentage of revenue attributable to critical materials activities. Companies without revenue or for which revenue is not an appropriate measure (such as many exploration and development companies) are assigned an Intensity Score of 50%.
• Have a free-float market capitalization of at least $100 million ($50 million for existing constituents).
• Be listed and available for trading on an eligible exchange for at least three full calendar months prior to the reconstitution reference date (existing constituents are exempt).
• Have a three-month average daily traded value of at least $500,000 ($250,000 for existing constituents).

Constituent Weighting Process

• The Index is a modified theme-adjusted free-float market capitalization-weighted index.
• A theme-adjusted free float market capitalization is calculated by multiplying each company's free-float market capitalization by its intensity score.
• For companies without revenue or where revenue is not an appropriate measure, the intensity score is assigned at 50%.
• Constituent weights are initially determined based on each company's theme-adjusted free float market capitalization relative to the aggregate theme-adjusted free float market capitalization of all index constituents.
• Initial weights are adjusted to meet the following constraints:
  • The aggregate weight of constituents classified as any specific energy transition material may not exceed 25%
  • No constituent weight may exceed 4.75%

Index Rebalancing

Per a July 8, 2026 announcement, the Sprott Critical Materials ETF has added September and March quarterly rebalances.

• The index will be rebalanced on a quarterly basis in March, June, September and December, with the semi-annual index reconstitution coinciding with the June and December rebalances. The implementation of a quarterly rebalance is intended to reduce the index drift from the stated methodology.
• The index will now be reconstituted on the first trading day following the third Friday in March, June, September and December, and rebalanced on the first trading date following the third Friday in March and September.

Critical materials are naturally occurring metals and minerals that are essential to the generation, transmission and storage of energy. Sprott focuses on uranium, silver and rare earths as energy generation minerals; copper as an energy transmission mineral, and lithium, nickel, manganese, cobalt and graphite as the battery metals crucial to energy storage.

• Electrification. Electricity demand is estimated to increase by 157% by 2050,² as energy consumption surges in the east driven by energy security and the urbanization and industrialization of developing countries, and driven by artificial intelligence (AI), data centers, electrification and reshoring increase in the West.
• Energy Security. Electricity demand is estimated to increase by 157% by 2050,² driven by energy security, urbanization and industrialization across developing economies, as well as the rapid expansion of artificial intelligence (AI), data centers, electrification and reshoring in the West.
• AI and Data Center Buildout. AI and data center buildout is accelerating quickly: annual investment grew from $100B in 2015 to $500B in 2024.² AI data centers are expected to consume 2% of global copper supply and over 3% of rare earths by 2030, amplifying strain on markets already facing structural supply deficits. Additionally, nuclear power is being used to power hyperscalers, driving demand for uranium.²

“Pure play"³ means that the companies in an ETF derive a significant portion of their revenue or assets from the targeted commodity or industry, rather than being diversified businesses with only incidental exposure. Pure-play investing helps ensure investors have meaningful exposure to the commodity or theme they are targeting, rather than owning diversified companies whose performance is driven by unrelated businesses. More focused exposure may allow the portfolio to better reflect the underlying investment thesis and provide stronger exposure to a particular material.

Upstream companies are generally the miners, developers and producers of critical materials such as uranium, copper, lithium, rare earths, nickel and silver. These companies sit at the beginning of the supply chain and provide the raw materials needed by downstream manufacturers.

If demand for a critical material increases, the companies extracting and producing that material may be among the first beneficiaries of the investment flowing into the supply chain. Sprott focuses on those upstream producers rather than end-users of the material.

Sprott Asset Management USA, Inc. is the investment adviser to the Sprott Critical Materials 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 Critical Materials ETF and is a registered broker-dealer and FINRA Member. Additionally, State Street Bank and Trust Company serves as the custodian and transfer agent.

The Sprott Critical Materials 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.