Frequently Asked Questions (FAQs)

The Sprott Junior Uranium Miners ETF (URNJ) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Junior Uranium Miners™ Index.

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 Junior Uranium Miners™ Index (NSURNJ™), a company must meet the requirements that follow.

Eligibility Requirements

• Be a security listed on an approved exchange.
• A security’s issuer must be classified by Sprott as a Uranium Producer, Developer, Explorer, or Royalty Company; or as a company that engages in supplying uranium.
• Have a market capitalization of at least $30 million or $25 million for existing constituents.
• Have a market capitalization no higher than $3 billion or $5 billion for existing constituents.
• The security must have been publicly traded at least three months prior to the reconstitution reference date.

Constituent Weighting Process

• The index is a modified free-float market capitalization-weighted index.
• Constituents’ initial weights are determined by dividing each constituent’s free-float market value by the aggregate free-float market value of all constituents.
• Initial weights are adjusted to meet the following constraints:
  • The weight of each of the four largest constituents by free-float market cap should not exceed 12%.
  • The weight of each of the remaining constituents may not exceed 4.75%.
  • No weight may be lower than 0.3%.

Index Rebalancing

• The index is reconstituted semi-annually in June and December, effective at the market open on the first trading day following the third Friday.
• Effective September 21, 2026 onwards, the index is rebalanced quarterly in March, June, September and December, effective at the market open on the first trading day following the third Friday. The semi-annual index reconstitutions will coincide with the June and December rebalances.

Investors who are looking for pure-play² access to small uranium companies with significant revenue and asset growth potential. Junior uranium miners that are upstream in the supply chain may be well positioned to benefit from increased investment in global electrification.

“Pure play” 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 while decreasing unintended exposures.

Upstream companies are generally the miners, developers and producers of uranium. These companies sit at the beginning of the supply chain and provide the raw materials needed by downstream manufacturers.

If demand for uranium increases, companies that extract and produce uranium may be among the first beneficiaries of capital flowing into the supply chain. Sprott focuses on those upstream producers rather than end-users of the material.

• Strong industry fundamentals are helping to recapitalize the uranium sector.
  • Producers: Higher uranium price contributes to earnings.
  • Developers: Renewed investor interest in the sector is helping to advance development.
  • Explorers: Are incentivized to resume drilling and exploration to identify new uranium deposits.

  We believe uranium miners are under-represented across the energy equity sector, offering strong upside potential.

• Junior uranium miners offer enhanced return potential.

  Junior uranium companies often have smaller market capitalizations and lower enterprise values relative to the size of their resource base. As uranium prices rise:

  • A producer's earnings may increase significantly.
  • A junior developer's project economics can improve exponentially.
  • A discovery-stage company can see substantial re-ratings from relatively modest exploration success.

  Junior uranium miners may be able to provide significant return potential and serve as a complement to investments in physical uranium and larger producers.

• Limited investor choice.

  There are only a few options to invest in uranium-related equity funds in the United States, and URNJ is the only ETF to provide focused exposure to junior uranium miners.

• Investing in individual uranium equities poses challenges.

  Many uranium mining companies are domiciled in foreign countries, have small market capitalizations, are volatile and may have limited liquidity, making individual equity investing more challenging for some investors. The Sprott Junior Uranium Miners ETF offers investors a convenient vehicle to access the uranium mining sector along with company diversification.

• Existing commodity funds have limited exposure to junior uranium miners.

  Existing ETFs focused on the uranium sector provide exposure to larger companies and physical uranium. Investors that seek exposure to smaller uranium miners, and their potential for significant growth, may find URNJ to be an attractive alternative to existing ETFs.

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

• Electrification/AI data center electricity demand

  As AI and data center electricity demand surges, and urbanization and electrification continue to expand globally, nuclear energy has taken center stage as a clean and reliable source of baseload power.

• Energy security

  Rising geopolitical risks have highlighted the vulnerability of relying on other nations to supply energy, and the need to secure domestic uranium supplies.

• Energy diversification

  Major nations are pursuing policies aimed at expanding electricity generation capacity and strengthening energy security, with nuclear power increasingly positioned as a key source of reliable baseload electricity.

• Complement to physical uranium

  Similar to the same effect seen between precious metals and precious metals equities, the inherent operational leverage within uranium miners may provide “torque” against the spot price of uranium.

• Alternative exposure/Diversification

  Uranium miners have exhibited a low/moderate correlation to major asset classes, posing potential diversification benefits.

Sprott Asset Management USA, Inc. is the investment adviser to the Sprott Junior Uranium 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 Junior Uranium 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.

The Sprott Junior Uranium 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 uranium@sprott.com for additional questions.