You are now leaving Sprottphysicalbullion.com and entering a linked website. Sprott has partnered with ALPS in offering the Sprott Gold Miners ETF. For fact sheets, marketing materials, prospectuses, performance, expense information and other details about the ETF, you will be directed to the ALPS/Sprott website at www.SprottETFs.comContinue to Sprott Exchange Traded Funds
For investors with a positive view on the price of gold, they may want to consider adding gold stocks to their overall precious metals allocation.
Gold stocks are sensitive to the price of gold because of their inherent operating leverage. As the price of gold rises it typically translates into higher profits for a gold company. As you can see from the table below, the annual returns from gold stocks have been pronounced relative to the price change of gold.
For most investors, we suggest they take a diversified approach when investing in gold stocks because of the company specific risk when investing in an individual stock. A popular and convenient way to invest in a basket of stocks is through exchange traded funds or ETFs. Like mutual funds, ETFs provide diversification of holdings but with the added benefits of providing intraday liquidity (the ability to buy and sell throughout the trading day) and lower management fees.
In partnership with ALPS Advisors, Inc. and ALPS Distributors, Inc. Sprott offers two gold mining ETFs. The Sprott Gold Miners ETF (NYSE Arca: SGDM) and the Sprott Junior Gold Miners ETF (NYSE Arca: SGDJ).