Overview
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.
Video Transcript
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.
Investment Risks and Important Disclosure
Relative to other sectors, precious metals and natural resources investments have higher headline risk and are more sensitive to changes in economic data, political or regulatory events, and underlying commodity price fluctuations. Risks related to extraction, storage and liquidity should also be considered.
Gold and precious metals are referred to with terms of art like "store of value," "safe haven" and "safe asset." These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.
Past performance is no guarantee of future results. You cannot invest directly in an index. Investments, commentary and opinions are unique and may not be reflective of any other Sprott entity or affiliate. Forward-looking language should not be construed as predictive. While third-party sources are believed to be reliable, Sprott makes no guarantee as to their accuracy or timeliness. This information does not constitute an offer or solicitation and may not be relied upon or considered to be the rendering of tax, legal, accounting or professional advice.