On April 25, 2022, and based on shareholder approval on April 6, 2022, the North Shore Global Uranium Mining ETF was reorganized into the Sprott Uranium Miners ETF (the “Fund”) and currently trades on the New York Stock Exchange Arca (Ticker: URNM). Sprott Asset Management LP (“SAM”) will act as the Fund’s investment adviser. SAM has extensive expertise with investments related to metals and mining, including uranium. We believe this reorganization may drive attention to the uranium investment sector, helping to build fund assets and potentially drive fund expenses lower.
Please Note: This FAQ is not wholly inclusive of all relevant information. Investors should consult the prospectus for more information, or please reach out to your Sprott representative at 888.622.1813 or firstname.lastname@example.org for additional questions.
The Sprott Uranium Miners ETF trades on the New York Stock Exchange under the symbol “URNM”. This is the same symbol as the North Shore Global Uranium Mining ETF. The trading symbol of the Fund’s underlying Index, the North Shore Global Uranium Mining Index, is “URNMX”.
The objective of the Sprott Uranium Miners ETF is identical to the North Shore Global Uranium Mining ETF and is summarized below:
The Sprott Uranium Miners ETF (URNM) seeks to invest at least 80% of its total assets in securities of the North Shore Global Uranium Mining Index (URNMX). The Index is designed to track the performance of companies that devote at least 50% of their assets to the uranium mining industry, which may include mining, exploration, development and production of uranium, or holding physical uranium, owning uranium royalties or engaging in other, non-mining activities that support the uranium mining industry. The URNMX Index is rebalanced semi-annually.
To be eligible for inclusion in the North Shore Global Uranium Mining Index (URNMX), a company must:
Index Composition & Weightings
No, the Sprott Uranium Miners ETF will inherit the historical track record of the North Shore Global Uranium Mining ETF, which has an inception date of December 3, 2019. The new Fund’s performance will seek to track the total return performance (before fees and expenses) of the North Shore Global Uranium Mining Index. Additionally, the North Shore Global Uranium Mining Index (URNMX) will retain its back-tested performance start date of June 30, 2017, and live inception date of August 9, 2019.
The Sprott Uranium Miners ETF will pay Sprott Asset Management a unitary fee with the following fee structure:
Sprott Asset Management LP is the investment adviser to the Sprott Uranium Miners ETF. ALPS Advisors, Inc. is the sub-adviser and ALPS Fund Services, Inc. serves as the administrator. Additionally, State Street Bank and Trust Company serves as the custodian and transfer agent.
The ETF will hold physical uranium via investment funds and companies whose sole purpose is to hold and store uranium. At the time of launch (April 25, 2022), the Fund held two securities that met these criteria: Sprott Physical Uranium Trust (TSX: U-U) and Yellow Cake PLC (LSE: YCA).
Uranium Miners May be Poised to Take Market Share Within the Energy Sector
Uranium and Nuclear Energy May be Critical to the Clean Energy Transition
New Uranium Bull Market is Underway, Incentivizing Miners and Investors
*Opinion subject to change.
We believe the Sprott Uranium Miners ETF has broad appeal to many investors. The following general themes are driving investor interest:
The Sprott Uranium Miners ETF expects to declare and distribute all of 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.
The Sprott Uranium Miners ETF intends to distribute annually to its shareholders substantially all of its investment company taxable income (computed without regard to the deduction for dividends paid), its net tax-exempt income, if any, and any net capital gain (net recognized long-term capital gains in excess of net realized short-term capital losses, taking into account any capital loss carryforwards). The distribution of investment company taxable income (as so computed) and net capital gain will be taxable to Fund shareholders regardless of whether the shareholder receives these distributions in cash or reinvests them in additional Shares.
*This does not constitute specific tax advice. Please consult your tax advisor.
Please reach out to your Sprott representative at 888.622.1813 or email@example.com for additional questions.
1 For uranium miners, the incentive price is the price of uranium at which new mining production is reasonably profitable.
2 Source: Bloomberg. Data is measured between 1/1/2004 and 2/28/2022 and measures the monthly correlation between The World Uranium Total Return Index (URAX Index); Goldman Sachs Commodity Index is measured by the SPGSCI Index; S&P 500 Index is measured by SPX Index; Barclays U.S. Aggregate Bond Index is measured by LBUSTRUU Index; FTSE NAREIT Index is measured by FNRE Index.
This material must be preceded or accompanied by a prospectus. An investor should consider the investment objectives, risks, charges and expenses carefully before investing. Click here to obtain a Sprott Gold Miners ETF Statutory Prospectus and Sprott Junior Gold Miners ETF Statutory Prospectus, which contains this and other information, or contact your financial professional or call 888.622.1813. Click here to obtain a Sprott Uranium Miners ETF Prospectus, which contains this and other information, or contact your financial professional or call 888.622.1813. Read each Prospectus carefully before investing.
The Funds are not suitable for all investors. There are risks involved with investing in ETFs including the loss of money. The Funds are 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.
Shares are not individually redeemable. Investors buy and sell shares of the Sprott Gold Miners ETF, Sprott Junior Gold Miners ETF and Sprott Uranium 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.
Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. 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. 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.
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