Exchange traded funds issuer ALPS said today the Sprott Gold Miners ETF (NYSEArca: SGDM), the first factor-based gold miners ETF, has been added to the Schwab ETF OneSource commission-free exchange traded funds platform.
SGDM, the first ETF from Sprott, the Canadian asset manager that offers an array of precious metals, including the Sprott Physical Gold Trust (NYSE: PHYS) and the Sprott Physical Silver Trust (NYSE: PSLV), tracks the Sprott Zacks Gold Miners Index. [New Gold Miners ETF Comes to Town]
The rules-based index, which is rebalanced quarterly, “seeks to emphasize gold stocks with the highest quarterly revenue growth measured on a year-over-year basis and stronger relative balance sheets as measured by long-term debt to equity,” according to Sprott.
SGDM debuted nearly a year ago and has quickly amassed $153.5 million in assets under management. The fund’s success spurred the creation of a small-cap equivalent, the Sprott Junior Gold Miners ETF (NYSEArca: SGDJ). That ETF debuted in March.
Sprott’s gold miner ETF indices starts with 25 stocks with the highest gold beta, or sensitivity to gold’s price movements, ranks them by market capitalization, and adjusts the ranking based on companies’ one-year revenue growth and debt-to-equity ratios, so the funds shift out overleveraged miners. [Sprott Launches First Factor-Based Junior Miners ETF]
SGDM’s largest holdings include Franco-Nevada (NYSE: FNV), Randgold Resources (NasdaqGS: GOLD) and Newmont Mining (NYSE: NEM). Those stocks for nearly 35% of the ETF’s weight, according to ALPS data.
Schwab ETF OneSource is the largest commission-free ETF trading platform with over 200 ETFs available to advisors and investors. SGDM is the sixth ALPS ETF to be featured on OneSource. Other ALPS offerings available on the commission-free platform include the ALPS Sector Dividend Dogs ETF (NYSEArca: SDOG) and the ALPS Emerging Market Sector Dividend Dogs ETF (NYSEArca: EDOG).
Last week, Schwab added nine new ETFs to OneSouce and one new issuer, J.P. Morgan Asset Management, the ETF arm of J.P. Morgan Chase (NYSE: JPM). As of May 31, 2015, Schwab ETF OneSource has $45 billion in assets under management and year-to-date flows into ETFs in the program are $5.8 billion, representing 37% percent of the total ETF flows at Schwab.
Sprott Gold Miners ETF
ETF Trends editorial team contributed to this article.
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