Frequently Asked Questions (FAQs)

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

Sprott Silver Miners & Physical Silver ETF (Nasdaq: SLVR) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Silver Miners™ Index (NSLVR™).

Nasdaq Sprott Silver Miners™ Index (NSLVR™) is designed to track the performance of a selection of securities in the silver industry, including silver producers, developers and explorers, and physical silver.

The index combines Sprott’s decades of experience in the mining sector with Nasdaq’s renowned index expertise. To be eligible for inclusion in the Nasdaq Sprott Silver Miners™ Index (NSLVR™), a company must meet the requirements that follow.

Eligibility Requirements

• A security must not be classified as a China A-Share.
• The security’s issuers must be classified by Sprott as a silver producer, developer or explorer, and an exchange-listed closed-end trust that provides physical silver exposure.
• A security’s issuer must have a Silver Intensity Score of at least 25%, i.e., at least 25% of its revenues should be attributable to the aforementioned strategy of this Index.
• Have a free float market capitalization of at least $30 million.
• Must maintain a minimum free float market capitalization of $25 million to remain in the Index
• New index constituents must have an Average Daily Traded Value of at least $20,000 over the preceding 3-month period.

Constituent Weighting Process

• The weighting of the largest individual company, by free float market capitalization, may not exceed 24% of the value of the Index.
• The weighting of physical silver is set to 17.50%.
• The aggregate weighting of all constituents over 5% of the value of the Index is capped at 49%.
• The weighting of no other individual company may exceed 4.75%.
• The aggregate weighting of any security with assets and/or revenues greater than 25% but less than 50% tied to the silver industry is capped at 15%, and the individual weighting of any of these securities is capped at 4.75%.
• At each step, the excess weight is redistributed pro-rata to each Index Component that has not already reached a previous weighting cap. This is a free float adjusted market cap-weighted index. An intensity score is calculated for each company to determine the percentage of revenue that is attributable to silver. For stocks without revenue, or for which revenue is not an appropriate characteristic, the intensity score is given at 50%. Free float market capitalization is used to weight companies with an intensity score greater than 50%. Companies with an intensity score of 25% to 50% are given an adjusted market capitalization by multiplying the intensity score and its free float market capitalization, and the company’s weight in the Index is determined by its adjusted market capitalization.

Index Rebalancing

• The index is rebalanced semi-annually in June and December, effective at the market open on the first trading day following the third Friday.

Investors that seek pure-play¹ access to silver mining companies and exposure to physical silver. Silver miners that are upstream in the supply chain may be well-positioned to benefit from investment in a critical material with value both as a precious metal and in evolving industrial and technological uses.

Sprott Asset Management USA, Inc. is the investment adviser to the Sprott Silver Miners & Physical Silver 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 Silver Miners & Physical Silver 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 Silver Miners & Physical Silver ETF is the only² ETF focused on providing pure-play exposure to silver miners and physical silver, a critical material with value both as a precious metal and in evolving industrial and technological uses.

• SLVR's holdings are pure-play companies with business operations that are focused on the silver mining sector and physical silver.
• Silver has value as a precious metal investment with a historically low correlation to other asset classes.³ Investments span coins, bars, jewelry and silverware.
• Silver is a critical material in energy and technology that is used across a variety of advancing industries, including solar energy, AI, automotive technology and healthcare. Silver demand significantly exceeded supply in each of the last five years and is forecast to rise.⁴
• Companies that are upstream in the supply chain may be well-positioned to benefit from the increased investment in silver necessary to meet rising industrial demand and growing investment interest in precious metals.

Critical materials are natural materials that are essential to meeting the rising energy needs arising from technological development, middle classes increasing around the world, and the generation, transmission and storage of clean energy. Sprott focuses on silver as a critical material based on its ability to conduct electricity in addition to its value as a precious metal.

With the silver supply-demand gap widening, miners may offer opportunities. The widening gap between supply and demand could translate into benefits for both silver prices and the mining companies involved.

We believe the Sprott Silver Miners & Physical Silver ETF has broad appeal to many investors. The following general themes are driving investor interest:

• There is a monetary case for silver. Silver is one of the oldest forms of currency, with investments spanning coins, bars, jewelry and silverware:
  • Silver has demonstrated historic price growth, with an annualized 7% return since the turn of the century, but it remains well below the near - $50 all-time highs. Rising industrial demand, investor interest and falling interest rates may propel the price forward.⁵
  • Silver has historically rallied following rate cuts from the Federal Reserve.⁶ The Federal Reserve has a dual mandate of promoting stable inflation and maximum employment. With inflation decelerating and unemployment rising, interest rate cuts are likely.
  • Silver and gold have historically rallied during periods of fiat currency debasement, inflation, falling interest rates, economic recoveries and rising geopolitical risks. In past precious metals bull markets, silver’s rally has been 2x as large as gold, on average. ⁷
  • Silver may be undervalued compared to gold. On average, gold has historically been priced at 70x the price of silver. ⁸
  • Silver inventories have fallen 20% over the past five years as industrial demand increases. Much of the London Bullion Market Association (LBMA) inventories are allocated to silver ETFs and are not readily available.⁹

• Industrial demand for silver is growing. Industrial applications account for a larger portion of demand at 55% for 2023.¹⁰
  
  • Silver is second only to oil as the most widely used commodity and has more than 10,000 uses due to its unique characteristics. For example:
    
    • As the most conductive metal in existence, it is used in electronics.
    • Due to its antibacterial and antimicrobial properties that can destroy pathogens, it is used in medicine.
    • Control rods, which can be found in nuclear reactors, contain about 80% silver.
    • Artificial intelligence, which is reliant on silver used in semiconductor chips.
  • Silver industrial demand grew 11% to a record 654 million ounces in 2023 and is expected to grow to 711 million ounces in 2024.¹⁰
  • Silver consumption in solar power is projected to grow. The global solar industry grew 76% in 2023 and is forecasted to grow another 33% in 2024.¹¹ Solar power now accounts for 16% of total silver demand as compared to 6% in 2015.¹²
  • Silver market deficits may continue to persist. While demand for silver may be poised to rise, silver supply has been flat, falling 3% since 2015, and is forecasted to be similar in 2024.¹⁰

• Silver miners may offer opportunities.
  
  • Silver miners have exhibited a low/moderate correlation to major asset classes, posing potential diversification benefits.¹⁴
  • Silver miners have demonstrated healthy profitability.¹⁵

The Sprott Silver Miners & Physical Silver 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.

1 The term “pure-play” relates directly to the exposure that the Fund has to the total universe of investable, publicly listed securities in the investment strategy.

2 Based on Morningstar’s universe of Precious Metals Sector Equity ETFs as of 1/14/2025.

3 Source: The Relevance of Silver in a Global Multi-Asset Portfolio, The Silver Institute, September 2022.

4 Source: Metals Focus: World Silver Survey 2024, The Silver Institute. Data as of 12/31/2023.

5 Source: Bloomberg as of 7/31/2024.

6 Source: Bloomberg as of 8/20/2024.

7 Source: Bloomberg. Data as of 08/21/2024.

8 Source: Bloomberg as of 7/31/2024.

9 Source: Bloomberg and LBMA as of 7/31/2024.

10 Source: Metals Focus, Silver Institute. Data as of 12/31/2023. The Silver Institute: World Silver Survey 2024.

11 Source: BloombergNEF, August 22, 2024.

12 Source: Metals Focus, Silver Institute. The Silver Institute: World Silver Survey 2024.

13 Source: Bloomberg as of 7/31/2024. Silver miners are measured by NMFSMT Index. A “bull market” refers to a financial markets condition when prices are generally rising. A “bear market” refers to financial market conditions when prices are generally falling.

14 Source: Bloomberg. Monthly data from 5/31/2016 to 7/31/2024. Please Note: Correlation is a measurement of the relationship between two assets and is expressed as a number between +1 and -1. A zero correlation indicates there is no relationship between the assets. A +1 indicates an absolute positive correlation (they always move together in the same direction). A -1 indicates an absolute negative correlation (they always move together in opposite directions of each other).

15 Source: Bloomberg as of 8/22/2024. Metals Focus, Silver Institute. The Silver Institute: World Silver Survey 2024.