This is an active ETF that invests in mining, exploration, and development companies focused on gold and silver, as well as royalty and streaming companies. It allocates a significant portion of net assets to precious metals companies and selects stocks using a value-oriented, contrarian strategy.

It suits investors who want exposure to the precious metals mining theme but prefer active stock selection over index tracking.

It is an ETF managed actively by Sprott.

The management team uses a value-oriented, contrarian approach to select gold and silver mining companies that have solid fundamentals but are overlooked by the market. Beyond miners, the fund also holds royalty and streaming companies that provide financing for gold and silver assets, seeking diversification. Active judgment, rather than passive index tracking, is the core of the strategy.

• Value-oriented, contrarian active stock selection
• Blended exposure to mining companies and royalty and streaming companies

Assets under management (AUM) are $153.6M, and the total expense ratio is 0.90% per year.

The precious metals mining sector depends heavily on spot gold and silver prices and on miners' cost structures, so it tends to be more volatile than the underlying assets. Because of the active selection structure, return trends can diverge from passive ETFs in the same theme.

When demand for safe-haven assets or inflation concerns come to the fore, investor interest tends to flow toward precious metals products. However, mining stocks are affected more by the economy, costs, and exchange rates than spot metals are, so fund flows tend to fluctuate considerably.

Its strengths are active stock selection and a blend of royalty companies, while its weaknesses are higher fees than passive funds and the performance uncertainty inherent in active management.

The two ETFs shown in the table, GDX and GDXJ, are large ETFs that track the same gold mining theme through passive indexes, so unlike the active selection of GBUG, their holdings are fixed by the index. For a focus on silver mining, SIL is a close comparison, as are COPX for copper mining and URA for the uranium theme. What sets GBUG apart from these is that it actively selects both gold and silver companies.

Here are the points to review before investing in GBUG. Checking in advance the active management structure, the volatility typical of precious metals mining, the fee level compared with passive funds, and the impact of exchange rates can help with decision-making.

Mining stocks are affected more heavily by costs, the economy, and exchange rates than spot precious metals are, so volatility can be amplified. Given the nature of active management, investors should also consider the risk that the selection results may underperform comparable passive funds.

This is an active ETF suited to investors who want to gain active exposure to precious metals mining. If cost and index fidelity matter most, passive alternatives such as GDX and GDXJ are worth considering, and if you want active stock selection, you can consider this ETF.