Sprott Junior Gold Miners ETF Switches to Index Tracking
In a recent announcement, Sprott Inc., a global asset manager specialising in precious metals and critical materials investments, has revealed that the Sprott Junior Gold Miners ETF (NYSE Arca: SGDJ) will undergo a one-time adjustment to its index methodology.
The Sprott Junior Gold Miners ETF is distributed by ALPS Distributors, Inc., a registered broker-dealer and FINRA Member. It is important to note that ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc., which serves as the Investment Adviser to the Sprott ETFs.
The adjustment, set to be implemented at the next scheduled rebalance, is a response to the increase in market capitalization of the index constituents. Due to this growth, many junior gold miners have risen above the $2 billion market capitalization ceiling. In response, Solactive AG, the index provider, announced a one-off adjustment to the guideline of the Index, raising the minimum market capitalization threshold for eligible securities from below USD $2 billion to below USD $3 billion.
This adjustment will not represent an ongoing modification to the index methodology. It is designed to ensure the index remains representative of the junior gold mining sector, while accommodating the growth of larger-sized gold companies primarily listed on Canadian and major U.S. exchanges.
It is worth noting that ETFs, including the Sprott Junior Gold Miners ETF, offer continuous liquidity, which may result in higher transaction costs and taxes. Shares of ETFs are not individually redeemable; investors buy and sell shares on a secondary market.
Investors are advised to consider the investment objectives, risks, charges, and expenses of each fund before investing. Natural resources and precious metals investments, such as those found in the Sprott Junior Gold Miners ETF, have higher headline risk and are more sensitive to changes in economic data, political or regulatory events, and underlying commodity price fluctuations.
As of September 16, 2025, the index has returned more than 90% year-to-date. For more information about Sprott Asset Management USA, Inc., please contact [email protected] or (416) 943-43945.
The copyright for this news article belongs to Sprott Inc.
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