Get More Out of Your Gold Allocation Sprott Gold Miner ETFs

Why Gold Stocks?

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.

Gold Bullion vs. Gold Stocks: Annual Total Return Performance (%) 

  2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Gold Bullion 13.10% -0.28% -3.64% 25.12 18.31 -1.58 13.09 8.56 -10.42 -1.72 -28.04 7.14 10.06 29.52 24.37 5.78 30.98 23.16 17.92 5.54 19.37 24.78 2.46
Gold Stocks* 11.84% -8.05% -8.93% 24.12 41.56 -8.39 12.42 54.57 -24.55 -11.71 -53.62 -8.46 -15.48 34.76 37.98 -26.34 17.58 22.98 30.43 -9.56 47.07 79.69 39.28
*NYSE Arca Gold Miners Index (GDM) with dividends reinvested. GDM is a modified market capitalization weighted index comprised of publicly traded companies primarily involved in the mining of gold and silver in locations around the world.

How to Invest in Gold Stocks?

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: Sprott Gold Miners ETF (NYSE Arca: SGDM) and Sprott Junior Gold Miners ETF (NYSE Arca: SGDJ). 


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†The Trusts are closed-end funds established under the laws of the Province of Ontario in Canada and are available to U.S. investors by way of listings on the NYSE Arca pursuant to the U.S. Securities Exchange Act of 1934. The Trusts are not registered as investment companies under the U.S. Investment Company Act of 1940.

††SESG is a U.S. registered exchange traded fund established pursuant to the U.S. Securities Act of 1933 and is listed on the NYSE Arca.


Sprott ETFs

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.

ALPS Distributors, Inc. is a registered broker-dealer and FINRA Member.

Schwab ETF OneSource is a trademark of Charles Schwab & Co, Inc. Used with permission.

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