SPROTT CRITICAL MATERIALS ET Business Summary

Sprott Critical Materials ETF (SETM) generates revenue primarily through a 0.65% net expense ratio charged as an annual management fee on its total net assets, which reached approximately $543 million by early 2026. The fund operates within the specialized thematic investment segment, focusing exclusively on the upstream supply chain of the global energy transition. Its portfolio is strategically concentrated in companies deriving at least 50% of their revenue from the mining, exploration, refining, and recycling of critical minerals such as uranium, lithium, copper, and rare earth elements. SETM competes directly with the VanEck Rare Earth & Strategic Metals ETF (REMX), Global X Lithium & Battery Tech ETF (LIT), and Global X Disruptive Materials ETF (DMAT). Within this landscape, SETM distinguishes itself as a high-conviction, pure-play vehicle that prioritizes upstream producers over downstream manufacturers, capturing significant alpha during periods of supply-side volatility in the commodities markets. The fund is managed by Sprott Asset Management, led by CEO John Ciampaglia, a veteran in ETF product development and resource investing who has been instrumental in expanding the firm’s thematic lineup. The broader parent organization, Sprott Inc., is headed by CEO Whitney George, who previously spent over two decades at Royce & Associates and brings deep expertise in small-cap value investing. The current executive leadership team includes Dan Elder as Chief Technology Officer, Kevin Hibbert as CFO and Co-COO, and Arthur Einav as General Counsel and Co-COO. The firm was founded by legendary resource investor Eric Sprott, who remains a significant shareholder and influential figure in the sector. The board is chaired by Ronald Dewhurst, formerly of J.P. Morgan Asset Management, and includes notable independent directors such as Dr. Graham Birch, a former natural resources lead at BlackRock. Major institutional backing for the parent company includes significant positions held by Mawer Investment Management and Connor, Clark & Lunn Investment Management.