Sprott Energy Transition Materials ETF

SETM

Market cap $571M

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.

When it comes to dominating the 24-hour financial news cycle, gold and silver may get most of the attention. Known as the “red metal,” copper may not be on investors' proverbial radars.

It's been a year since the debut of the Sprott Silver Miners & Physical Silver ETF (SLVR) and the fund is more lustrous than ever. With over $730 million in assets and about $450 million inflows in 2025, the index fund accomplished this feat in a year of fever-pitched demand for active.

In 2025, top-performing exchange-traded funds (ETFs) often capitalized on an angle related to innovation or to metals. With demand for data centers to power AI applications surging, funds focused on the infrastructure and materials necessary to fuel this industry thrived.

Gold and silver were not the only metals to see breakout performances in the later half of 2025.  Much like these other metals, copper also closed out last year in a highly favorable position.