Change to Index Tracked by Sprott Junior Gold Miners ETF (SGDJ)

Rhea-AI Summary

Sprott Asset Management USA, a subsidiary of Sprott Inc. (NYSE: SII), announced changes to the market capitalization requirements for the Solactive Junior Gold Miners Custom Factors Index, which is tracked by the Sprott Junior Gold Miners ETF (NYSE Arca: SGDJ).

Due to the exceptional 90% year-to-date performance of gold miners as of September 16, 2025, many junior miners have exceeded the previous $2 billion market cap ceiling. In response, Solactive AG is implementing a one-time adjustment, raising the maximum market capitalization threshold for eligible securities from $2 billion to $3 billion at the next scheduled rebalance.

Positive

• Gold miners in the index have achieved exceptional 90% year-to-date returns
• Market cap increase reflects strong performance of underlying companies
• Index adjustment ensures continued accurate representation of junior gold miners

Negative

• One-time modification may create temporary portfolio turnover
• Higher market cap threshold could slightly alter the fund's original investment focus

News Market Reaction

+0.93%

1 alert

+0.93% News Effect

On the day this news was published, SII gained 0.93%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, Sept. 18, 2025 (GLOBE NEWSWIRE) -- Sprott Asset Management USA, Inc., a wholly-owned subsidiary of Sprott Inc., today announced a slight modification to the index that Sprott Junior Gold Miners ETF (NYSE Arca: SGDJ) tracks.   Gold miners, as measured by the Solactive Junior Gold Miners Custom Factors Index, have returned more than 90%, year-to-date, as of September 16, 2025. This strong performance has led to an increase in market capitalization of the index constituents, causing many junior gold miners to rise above the $2 billion market capitalization ceiling as outlined in Section 2.1 of the index methodology. In response to this development in the gold market and to preserve the integrity and the implementability of the Index’s weighting methodology, Solactive AG announced a one-off adjustment to the guideline of the Index, which SGDJ tracks. This change affects the security-level market capitalization requirement as outlined in Section 2.1 of the index methodology.

Notably, the minimum market capitalization threshold for eligible securities will be revised from below USD $2 billion to below USD $3 billion. This adjustment is being implemented at the next scheduled rebalance as a one-time change and does not represent an ongoing modification to the index methodology.

About Sprott Asset Management USA, Inc.

Sprott Asset Management USA, Inc. is a wholly-owned subsidiary of Sprott Inc. (“Sprott”). Sprott is a global asset manager focused on precious metals and critical materials investments. We are specialists. We believe our in-depth knowledge, experience and relationships separate us from the generalists. Our investment strategies include Exchange Listed Products, Managed Equities and Private Strategies. Sprott has offices in Toronto, New York, Connecticut and California. For more information, please visit www.sprott.com.

Contact:
Glen Williams
Senior Managing Partner
Investor and Institutional Client Relations
Direct: (416) 943-43945
gwilliams@sprott.com

Important Disclosures

An investor should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. To obtain a fund’s Prospectus, which contains this and other information, contact your financial professional, call 1.888.622.1813 or visit SprottETFs.com. Read the Prospectus carefully before investing.

Exchange Traded Funds (ETFs) are considered to have continuous liquidity because they allow for an individual to trade throughout the day, which may indicate higher transaction costs and result in higher taxes when fund shares are held in a taxable account.

The funds are non-diversified and can invest a greater portion of assets in securities of individual issuers, particularly those in the natural resources and/or precious metals industry, which may experience greater price volatility. Relative to other sectors, natural resources and precious metals investments have higher headline risk and are more sensitive to changes in economic data, political or regulatory events, and underlying commodity price fluctuations. Risks related to extraction, storage and liquidity should also be considered.

Shares are not individually redeemable. Investors buy and sell shares of the funds on a secondary market. Only “authorized participants” may trade directly with the fund, typically in blocks of 10,000 shares.

Sprott Asset Management USA, Inc. is the Investment Adviser to the Sprott ETFs. ALPS Distributors, Inc. is the Distributor for the Sprott ETFs and is a registered broker-dealer and FINRA Member.

ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc.

© 2025 Sprott Inc. All rights reserved.

FAQ

What changes were made to the Sprott Junior Gold Miners ETF (SGDJ) index requirements?

The market capitalization ceiling for eligible securities in the index was increased from $2 billion to $3 billion as a one-time adjustment at the next scheduled rebalance.

Why did Sprott Asset Management modify the SGDJ ETF index requirements?

The change was made because many junior gold miners exceeded the previous $2 billion market cap ceiling due to strong performance, with the index returning over 90% year-to-date as of September 16, 2025.

How has the Solactive Junior Gold Miners Custom Factors Index performed in 2025?

The index has delivered exceptional performance with returns exceeding 90% year-to-date as of September 16, 2025.

Will the SGDJ ETF index changes be permanent?

No, this is specifically noted as a one-time adjustment to the index methodology and does not represent an ongoing modification.

When will the new SGDJ ETF index requirements take effect?

The new market capitalization requirements will be implemented at the next scheduled rebalance of the index.