It is a passive thematic ETF that tracks an index of small junior gold mining companies. By spreading its investments across early-stage small- and mid-cap gold miners, it gives leveraged-like exposure to gold prices and the mining industry's trends.

It suits risk-tolerant investors who want to bet on rising gold prices through mining stocks and are willing to actively endure the extremely high volatility typical of small- and mid-cap gold miners.

It is a passive (index-tracking) ETF managed by Sprott.

It tracks an index made up of early-stage small- and mid-cap gold mining companies. These stocks are more volatile than large gold miners and react more sensitively to gold prices, so the fund aims for large gains when gold rallies, but its drawdowns are also deeper when gold falls.

• Concentrated in small- and mid-cap junior gold miners
• High sensitivity to gold prices

Assets under management (AUM) stand at $281.0M, and the total expense ratio is 0.50% per year.

The main point of comparison against large gold mining ETFs and other metal mining ETFs is its concentration in small- and mid-cap junior gold miners.

Gold mining stocks are driven by gold prices, mining costs and risk appetite. When gold rises, miners tend to climb by more than gold itself, and when gold falls, they drop by more. This amplification is larger for junior gold miners than for large-cap miners.

Fund flows into gold miners diverge depending on gold prices, risk appetite and safe-haven demand, and money sometimes pours into related products when expectations for a stronger gold price build. It is also worth noting that performance can vary widely depending on gold prices and the risk environment.

Leverage to rising gold prices is both its strength and its risk, and extremely high volatility, mining risk and metal concentration are the key considerations.

For other junior gold miner exposure, GDXJ is a direct alternative, and for exposure to large gold miners, products such as GDX are also worth comparing. For exposure to silver mining companies, products such as SIL can also be considered. The three products shown in the table, GDXJ, GDX and SIL, cover junior gold miners, large gold miners and silver miners respectively, and differ in market-cap range and target metal. This ETF's differentiating factor is Sprott's selection of junior gold miners.

Here are the points to review before investing in SGDJ. Leverage to rising gold prices is attractive, but extremely high volatility, mining risk and metal concentration need to be checked in advance. It is also a good idea to compare it with large gold miner and other metal mining products.

Weak gold prices, rising mining costs, and exploration or production disruptions are the main variables for performance, and small- and mid-cap gold miners greatly amplify gold price swings, making volatility extremely high. In a gold price decline, drawdowns can be larger than for large gold miners.

It is a suitable candidate for risk-tolerant investors who want to bet on rising gold prices through small- and mid-cap miners. If you want other junior gold miners or large gold miners, consider products such as GDXJ and GDX; if you want Sprott's junior gold miner exposure, it is advisable to choose this product only after fully understanding the risks.