TORONTO, July 15, 2014 /CNW/ - Sprott Asset Management LP ("Sprott") is pleased to announce the launch of the Sprott Gold Miners Exchange Traded Fund ("the ETF") on the New York Stock Exchange (NYSE: SGDM). The ETF was created in partnership with ALPS Advisors Inc. ("ALPS") and Zacks Index Services.
The goal of the ETF is to provide exposure to the Sprott Zacks Gold Miners Index (NYSE: ZAXSGDM), which seeks to outperform a purely passive, market-capitalization representation of gold stocks. The Index methodology is factor-based and was developed by leveraging Sprott's long-time experience as a gold investor and Zacks' research capabilities.
"The market is ready for an innovative new way to gain exposure to gold stocks," said John Ciampaglia, Chief Operating Officer of Sprott. "To our knowledge, the Sprott Gold Miners ETF is the first gold equities ETF to be based on a proprietary, factors-based index strategy."
"We have a strong distribution relationship in the United States with ALPS and look forward to working closely with them to introduce the Sprott Gold Miners ETF to investors," added Mr. Ciampaglia.
"At Sprott, we are committed to developing innovative new products in areas where we can provide value through our expertise and experience," said John Wilson, CEO of Sprott. "Along with our three Sprott Physical Bullion Trusts, this latest offering now gives us four NYSE-listed investment funds that are easily accessible to investors."
The Index aims to track the performance of large to mid-capitalization publically traded gold companies that are listed on major U.S. exchanges. The Index uses a transparent, rules-based methodology that is designed to identify 25 gold stocks with the highest historical beta to the spot price of gold, with each stock's weighting in the Index adjusted based on its quarterly revenue growth on a year-over-year basis and the quality of its balance sheet, as measured by long-term debt to equity. The Index is rebalanced on a quarterly basis to incorporate the latest financial data into the screening process. The Index can also invest to a lesser degree in silver companies that meet the above criteria.
To learn more, please visit sprottetfs.com
IMPORTANT DISCLOSURES AND DEFINITIONS:
An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a prospectus, which contain this and other information please contact your financial professional or call 1.855.215.1425. Read the prospectus carefully before investing.
Sprott Gold Miners ETF shares are not individually redeemable. Investors buy and sell shares of the Sprott Gold Miners ETF on a secondary market.
Only market makers or "authorized participants" may trade directly with the Fund, typically in blocks of 50,000 shares.
The Fund is not suitable for all investors. There are risks involved with investing in ETFs including the loss of money. The Fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund.
The Fund will be concentrated in the gold and silver mining industry. As a result, the Fund will be sensitive to changes in, and its performance will depend to a greater extent on, the overall condition of the gold and silver mining industry. Also, gold and silver mining companies are highly dependent on the price of gold and silver bullion. These prices may fluctuate substantially over short periods of time so the Fund's Share price may be more volatile than other types of investments. Funds that emphasize investments in small/mid cap companies will generally experience greater price volatility. Funds investing in foreign and emerging markets will also generally experience greater price volatility. There are risks involved with investing in ETFs including the loss of money. Diversification does not eliminate the risk of experiencing investment losses. ETFs are considered to have continuous liquidity because they allow for an individual to trade throughout the day. The Sprott Gold Miners ETF is a new product with a limited operating history.
ALPS Portfolio Solutions Distributor, Inc. is the Distributor for the Sprott Gold Miners ETF
About Sprott Asset Management
Sprott is an alternative investment manager that specializes in precious metals and natural resource investing. Headquartered in Toronto, Canada, the mining finance center of the world, Sprott manages approximately $5 billion in precious metals-related investments, including the Sprott Physical Bullion Trusts, which trade on the NYSE Arca. For more information, please visit sprott.com
ALPS provides customized asset servicing and asset gathering solutions to the financial services community through an entrepreneurial culture based on the commitment to "Do Things Right." Founded in 1985, ALPS continues to actively promote all of its various business segments, from asset servicing through ALPS Fund Services, Inc. to asset gathering through ALPS Distributors, Inc. and ALPS Advisors, Inc. Headquartered in Denver, with offices in Boston, New York, Seattle, and Toronto, ALPS, a wholly-owned subsidiary of DST Systems, Inc., today represents more than 400 employees, over 200 clients, and an executive team that has been in place for more than 18 years. For more information about ALPS and its services, visit alpsinc.com. Information about ALPS products is available at alpsfunds.com
About Zacks Index Services
Zacks Index Services (the "Index Provider") is the index provider for the Fund. Zacks Index Services, a division of Zacks Investment Management ("ZIM"), creates and maintains proprietary, quantitative portfolio strategies that are licensed to product sponsors and serve as the basis of investment products such as ETFs, unit investment trusts and closed-end funds. ZIM, a wealth management boutique, is a leading expert on earnings and using earnings estimates in the investment process. ZIM is a wholly owned subsidiary of Zacks Investment Research, one of the largest providers of independent research in the U.S.
SOURCE: Sprott Asset Management LP
For further information:
John Ciampaglia, CFA
Chief Operating Officer
Sprott Asset Management LP