When looking to get commodity exposure, it could be more beneficial to use a diversified strategy to capture potential upside as opposed to chasing a specific commodity. An actively managed ETF can help in this regard. When it applies specifically to metals exposure, one notable fund to consider is the Sprott Active Metals & Miners ETF (METL ).
The fund is the latest addition to the Sprott roster, which includes an existing line of critical minerals ETFs precious metals ETFs. The active management allows its portfolio managers to invest in a broad range of metals that are showing upside potential given current market and global supply/demand conditions. This dynamism allows METL to remain flexible in any market environment. And its diversified exposure mitigates concentration risk in a specific metal.
“METL is the only ETF that provides active exposure to miners of a diverse group of metals,” said Steve Schoffstall, director of ETF product management at Sprott Asset management. “Not only do those metals include critical materials, but it also has exposure to things like steel, platinum, palladium, and has a broader mandate to invest in more diversified metals.”
The fund adds exposure to mining equities. Those requires specific expertise and experience to navigate this nuanced market. Again, given the operational complexities of mining and the cyclical nature of the business, this is where investors can benefit from active management.
METL's Deep Talent Pool
METL benefits from a talented group of managers headed by Senior Portfolio Manager & Economic Geologist Justin Tolman, BSc (Hons), MBA. He has a plethora of industry experience, including two decades in senior roles with major global mining and exploration companies.
“I had the chance to work in open cut mines, underground mines, doing geostatistics and building resource estimates exploration, taking different projects all the way from discovery through to the studies to show their economics through to production,” Tolman said of his industry experience in metals.
Bird's-Eye Perspective
Since then, Tolman has been able to parlay that experience into a career in investing. Tolmen has found his bird’s-eye perspective on the metals and mining industry invaluable since joining Sprott.
“I didn’t know it at the time, but it was actually very well-suited for analyzing metals and mining investments. I’ve been fortunate to be able to hone that here with the team at Sprott for the last seven or eight years as a portfolio manager and an investment strategist,” Tolman said.
Helping to manage METL is an investment team comprising Maria Smirnova, MBA, CFA, senior portfolio manager & chief investment officer; Shree Kargutkar, MBA, CFA, senior portfolio manager; and Victor Huwang, MBA, CRC, director, U.S. operations.
“We’ve got a very well-put-together team that I think is one of the best anywhere,” Tolman added.
Watch the video below to learn more about METL, its investment team, and the fund’s strategy:
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.
Past performance is no guarantee of future results. One cannot invest directly in an index.
Diversification does not protect against loss.
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.
Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.
Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL
Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP.
Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.
