Sprott Asset Management, the Toronto-based asset manager, began trading the Sprott ESG Gold ETF (SESG) on NYSE Arca on Tuesday.
The new exchange-traded fund will “source gold from companies and mines that meet Sprott’s ESG screening criteria,” according to the issuer.
“We created SESG to fill a gap in the marketplace with a gold fund focused on trust, transparency, and traceability. Our goal is to answer a number of key questions for investors: where does my gold come from, who produced it and was it produced sustainably by recognized ESG leaders?” said John Ciampaglia, CEO of Sprott.
Sprott plans to start sourcing gold from Canadian mines operated by Agnico Eagle Mines Limited and Yamana Gold Inc.
Sprott’s existing Gold Miners ETF (SGDM) has an expense ratio of 0.50% and is down 16.02% year to date. SGDM tracks the performance of the Solactive Gold Miners Custom Factors Index. The VanEck Gold Miners ETF (GDX), a competing fund with an average daily trading volume of $608.75, has an expense ratio of 0.51% and is down 18% so far this year.
SESG’s launch coincides with ETF investors’ renewed appetite for gold. Commerzbank AG analyst Carsten Fritsch highlighted a reversal in gold-backed ETFs following 21 days of withdrawals.
“Recently there were three consecutive days of inflows, which could point to a shift in sentiment among ETF investors,” Fritsch said in a note cited by Bloomberg.
Gold rose to the highest level in four weeks as investors turned to traditional safe havens amid heightening geopolitical tension in Taiwan, Bloomberg data showed.
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