5 Best Mining ETFs

4. Sprott Gold Miners ETF (NYSE:SGDM)

5-Year Performance as of September 9: 58.52%

Next on the list of the best mining ETFs is the Sprott Gold Miners ETF (NYSE:SGDM), which seeks to achieve investment outcomes that align with the performance of the Solactive Gold Miners Custom Factors Index. This index is designed to monitor the performance of larger gold companies listed on Canadian and significant U.S. exchanges. Launched on July 15, 2014, the ETF, as of September 9, 2023, holds net assets worth $225 million. The total operating fee is set at 0.50% and the portfolio comprises 31 stocks.

Agnico Eagle Mines Limited (NYSE:AEM) is one of the largest holdings of the Sprott Gold Miners ETF (NYSE:SGDM). Agnico Eagle Mines Limited (NYSE:AEM) is a gold mining company engaged in the exploration, development, and production of precious metals. The company operates mines in Canada, Australia, Finland, and Mexico. Additionally, Agnico Eagle Mines Limited (NYSE:AEM) is involved in exploration and development efforts in Canada, Australia, Europe, Latin America, and the United States.

According to Insider Monkey’s second quarter database, 42 hedge funds were bullish on Agnico Eagle Mines Limited (NYSE:AEM), same as the preceding quarter. Jean-Marie Eveillard’s First Eagle Investment Management held the largest position in the company, with 6.3 million shares worth $313.3 million.

Old West Management made the following comment about Agnico Eagle Mines Limited (NYSE:AEM) in its Q4 2022 investor letter:

“Agnico Eagle Mines Limited (NYSE:AEM) is the third largest gold miner in the world with mines in Canada, Australia, Finland, and Mexico. Although we have long respected the company, we became shareholders when they acquired our portfolio holding, Kirkland Lake Gold. Agnico chairman Sean Boyd is one of the most respected executives in the mining industry. He was appointed CEO in 1998 and was recently appointed Executive Chairman. Boyd is a large shareholder and perfectly fits our owner/manager role. This year the company is projected to make nearly $1 billion in net income on $5.8 billion in revenue with $758 million of free cash flow. Net income has been growing 15% per year for several years. Agnico has a fortress balance sheet with $1.3 billion of long term debt, which is only 2 times EBITDA, and $820 million cash in the bank. The stock trades at $55 per share, which is 26 times earnings with a 2.9% dividend yield.”