A Portfolio Power Play: The Case for Critical Materials ETFs

Gold/Silver/Critical Minerals Content Hub A Portfolio Power Play: The Case for Critical Materials ETFs Nick Wodeshick August 28, 2026 For advisors and investors still seeking to amplify their portfolio’s diversification and inflation resilience, commodities can help meet the moment. However, some commodities may be especially well-positioned to take advantage of long-term trends and growth opportunities. Key Takeaways: Critical materials are often valued for their diversification and inflation resilience, but they can also offer deep growth opportunities as well. This is due to how many critical materials are deployed in the energy sector, needed for manufacturing a number a key components. With energy demand likely not slowing any time soon, the Sprott Critical Materials ETF (SETM) may offer a compelling portfolio allocation. As an example, take a look at critical materials . Not only can these commodities provide needed inflation protection and diversification, but they also tap into a crucial long-term investing opportunity: energy. Across both the public and private sectors, energy resilience is becoming more of a key priority. This is due to a few things: rising gas prices, geopolitical supply chain pressures, and a need to meet growing AI demand. Critical materials are utilized across a variety of different aspects of the energy sector. This includes batteries, nuclear energy, solar cells, and much more. As such, critical materials will be able to benefit from a significant driver of demand for the coming years, as both governments and private companies look to invest in stronger energy grids. See More: How AI & Tariffs Have Helped Drive Copper’s Summer Rally Compelling Current Conditions for Critical Materials The long-term outlook for critical materials may be attractive, but what about the current environment? Recently, Steve Schoffstall, managing partner at Sprott Inc. and head of ETFs at Sprott Asset Management, joined an episode of Metals in Motion to examine this very topic. “When you look at how critical materials have done over recent years, what we see is that the miners are generally in a position where their balance sheets have gotten much better over the last several years,” Schoffstall said. He added, “We’re seeing higher profitability, much stronger balance sheets, and less leverage in some cases. When you look at the underlying demand for a lot of these critical materials, it’s actually done nothing but get stronger over the last 12 to 24 months.” The Sprott Critical Materials ETF (SETM) can help advisors and investors bolster their exposure to these key commodities. SETM invests in a broad range of different critical materials, offering diversified exposure to this compelling opportunity set. For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub . Disclosures An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below. Past performance is no guarantee of future results. One cannot invest directly in an index. Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance. Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi. Exchange Traded Funds (ETFs): SETM , LITP , URNM , URNJ , COPP , COPJ , NIKL , SGDM , SGDJ , SLVR , GBUG , METL , and REXC Physical Bullion Funds: PHYS , PSLV , CEF , and SPPP . Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal. RELATED TOPICS Critical Materials ETF gold & silver investing Content Hub gold/silver/critical minerals Content Hub SETM Sprott Sprott Asset Management Steve Schoffstall Earn free CE credits and discover new strategies