Some of SGDJ’s largest U.S-listed holdings include First Majestic Silver (NYSE: AG), Hecla Mining (NYSE: HL), Pan American Silver (NasdaqGS: PAAS) and IAMGOLD (NYSE: IAG). Those stocks combine for 21.5% of the new ETF’s weight.
SGDJ debuts at a time of extreme bearish sentiment toward junior miners, but the ETF could be a way to play a reversal in that sentiment.
“Sentiment is extremely negative – the junior gold stock sector is down over 80% since its market high in late 2010. High-quality junior miners are potential acquisition targets for senior miners,” according to Sprott. [Waiting for a Junior Miners ETF Rebound]
The new ETF charges 0.57% per year.
Chart Courtesy: Sprott