While there are many different reasons why one may invest in metals, many choose to do so due to more traditional justifications, such as their potential as a hedge against inflation.
However, investing in metals doesn’t need to be a play against inflation or the U.S. dollar. Instead, advisors and investors can alternatively look to invest in these metals due to what the materials are actually bringing to the table.
As an example: look at how persistent AI adoption and innovation has remained as a core market theme. Companies across a variety of sectors and industries are continuing to adopt the technology, and the AI providers are still seeking to lead the pack in innovation.
Increased AI usage and research will likewise require stronger infrastructure and storage. In turn, this means demand for energy will likely surge as well.
This is where investing in critical materials, such as copper, lithium, uranium, and others, comes into play. By adding exposure to these metals to one’s portfolio, an investor may receive the diversification of metals while also tapping into the demand and momentum in the energy and AI space.
SETM Offers a Balanced Approach to Critical Materials Exposure
For instance, look at the Sprott Critical Materials ETF (SETM ). SETM is built to provide diversified access to a variety of different metals and materials that play key roles in supplying the world with energy.
The fund’s portfolio includes metals involved in all different aspects of clean energy. For example, SETM offers exposure to companies who mine copper, which is obviously a key material for facilitating energy transmission. SETM also invests in miners who produce metals crucial to energy storage as well, such as lithium, nickel, and cobalt. The fund invests in silver, uranium, and rare earth miners as well, as these materials remain necessary for energy generation.
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.
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.
