Douglas Yones, NYSE Head of Exchange Traded Products, interviews John Ciampaglia, Chief Executive Officer, Sprott Asset Management, on the recent launch of Sprott Uranium Miners ETF (URNM).
Sprott Uranium Miners Fund (NYSE Arca: 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.
URNM adds approximately $1.1 billion of energy-transition-related assets to Sprott's total Assets Under Management ("AUM") and establishes Sprott as the largest manager of uranium investments in the world1 with approximately $4.5 billion in uranium related, energy-transition AUM, as of April 21, 2022.
Douglas Yones: Hello and welcome to the latest edition of The Exchange brought to you by the New York Stock Exchange. I'm Douglas Yones, your host. As a reminder, today's interview is for informational purposes only. The NYSE does not recommend investments or investment strategies. We live on the New York Stock Exchange floor with John Ciampaglia. He's the CEO of Sprott Asset Management. John, thank you for joining.
John Ciampaglia: Thank you for having me. It's great to be back in person at the New York Stock Exchange after a two-plus year break. Glad to be here. Thank you.
Douglas Yones: It's great to have you back. Now, Sprott, you just acquired the North Shore Global Uranium Mining ETF (URNM). Tell us about this development.
John Ciampaglia: We're excited about adding another fund to our suite of products here at the New York Stock Exchange. We recently launched a physical uranium trust, and this is the perfect complement to adding the uranium mining equities to our suite of offerings.
Douglas Yones: The ticker symbol is easy to remember. URNM. Tell us the strategy of the ETF.
John Ciampaglia: The ETF provides investors with exposure to a group of different uranium mining companies. Those are producers, development companies, exploration companies, and also hold some vehicles, including the Sprott Physical Uranium Trust that gives you access to the physical commodities. It's a nice diversified basket if you're looking for exposure to the sector.
Douglas Yones: Let's stay on that for a moment. You mentioned the idea of miners. What's the investment case for investing in the miners?
John Ciampaglia: Uranium is a critical mineral that goes into nuclear power plants. Those power plants produce 20% of the U.S.'s electricity and 10% of all global electricity production is from nuclear power. As the world is trying to decarbonize and move to cleaner, greenhouse-free power generation, uranium is a key fuel for that whole ecosystem. The uranium miners are obviously the companies providing this being a critical mineral, and we think they're just starting a new bull market.
Douglas Yones: Now, of course, we're talking uranium. But Sprott, you have another full lineup of ETFs. Where can someone go to learn more about all of your ETFs?
John Ciampaglia: Sprott.com is probably the easiest place to start the journey.
Douglas Yones: All right, sprott.com. As a reminder, if you caught this episode live and you're looking for additional ETF thought leadership, you can find it all on our website, homeofetfs.com. That's homeofetfs.com. All brought to you by the New York Stock Exchange, the home of ETFs.
According to Morningstar, Sprott is the largest manager of uranium investments in the world with approximately $4.5 billion in uranium related, energy-transition AUM, as of April 21, 2022.
An investor should consider the investment objectives, risks, charges and expenses carefully before investing. To obtain a Sprott Uranium Miners ETF Statutory Prospectus, which contains this and other information, visit https://sprottetfs.com/urnm/prospectus, or contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing.
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’s investments will be concentrated in the uranium 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 uranium industry. Also, uranium companies may be significantly subject to the effects of competitive pressures in the uranium business and the price of uranium. The price of uranium may be affected by changes in inflation rates, interest rates, monetary policy, economic conditions and political stability. The price of uranium may fluctuate substantially over short periods of time, therefore the Fund’s share price may be more volatile than other types of investments. In addition, they may also be significantly affected by import controls, worldwide competition, liability for environmental damage, depletion of resources, mandated expenditures for safety and pollution control devices, political and economic conditions in uranium producing and consuming countries, and uranium production levels and costs of production. Demand for nuclear energy may face considerable risk as a result of, among other risks, incidents and accidents, breaches of security, ill-intentioned acts of terrorism, air crashes, natural disasters, equipment malfunctions or mishandling in storage, handling, transportation, treatment or conditioning of substances and nuclear materials.
Shares are not individually redeemable. Investors buy and sell shares of the 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-capitalization companies will generally experience greater price volatility. Funds investing in foreign and emerging markets will also 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.
Sector weightings are determined using the Bloomberg Industry Classification Standard (“BICS”).
ALPS Distributors, Inc. is the Distributor for the Sprott Uranium Miners ETF and is a registered broker-dealer and FINRA Member.
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