Sprott Energy Transition Materials ETF

SETM

Market cap $605M

Lithium may dominate the headlines, but it's no longer the most interesting story in critical minerals. A quieter rally is building—one driven by AI demand, defense needs, and tightening supply.

Key Takeaways While energy investments of all kinds have struggled amid conflict in the Middle East, uranium might offer a compelling long-term opportunity. Sprott Asset Management CEO John Ciampaglia noted that uranium's fundamentals remain sound, and that it remains far harder to substitute or replace than other metals investors tend to allocate towards.

Silver is entering its sixth consecutive year of a structural supply deficit, as global production fails to keep pace with the massive demand required for the clean energy transition and AI infrastructure.

A new commodity supercycle is taking shape in the early innings of 2026. According to a recent Sprott report, Why Critical Materials Are Leading the New Commodity Cycle, a structural shift that emphasizes deglobalization, energy security, and fiscal dominance is driving the current critical minerals market.

While there are many different reasons why one may invest in metals, many choose to do so due to more traditional justifications, such as their potential as a safe haven against inflation.  However, investing in metals doesn't need to be a play against inflation or the U.S. dollar.

Despite falling below $5,000 recently, it could be an opportune time to strike and purchase the dip in gold prices. Fundamental demand drivers could continue to push the precious metal higher through the rest of the year.

When investors buy a thematic ETF, they're betting that a specific trend will reshape the economy.

Precious metals plunged after President Trump named his Fed chair nominee, a sharp swing that saw gold surpass bitcoin in volatility while mining stocks tumbled. Investors rushed to buy the dip, but volatility underscored the value of diversifying across metals with different demand drivers and macroeconomic exposure. Diversified ETFs offer access to a broad range of metal and mining stocks spanning the materials and energy sectors.

The Sprott Critical Materials ETF (SETM) offers targeted exposure to rare earth and critical mineral miners poised to benefit from Western government intervention. U.S. government initiatives, including Project Vault's $12B stockpile and a proposed $2.5B Congressional reserve, will inject capital far exceeding the current $4B global rare earth market. Political mandates ensure guaranteed buyers at nearly any price, creating a highly favorable environment for SETM constituents and rare earth producers.

Someone asked me the other day, “What are the hot themes for the new year?”  To start the year, we have seen some pretty impressive outsized performance from several key investment themes.