Categories: Stocks / ETFs

How U.S. Policy Powers Critical Mineral Momentum

Some of the best portfolio opportunities can arise when investor demand lines up with favorable federal policy. Take the critical mineral and materials sector, for instance. This is a sector that, as of late, has benefitted from increased interest in inflation hedge. Not only can exposure to this sector provide crucial diversification, but these materials and the companies that mine them tend to perform better during inflationary periods than traditional stocks or bonds.

Furthermore, federal policy is creating a strong ballast for the critical materials sector in the United States. Earlier in October, the U.S. government announced policy maneuvers that may work directly in favor for many critical materials companies.

This includes the Pentagon reportedly planning an initiative to stockpile roughly $1 billion in critical minerals. This effort is reportedly to both amplify national stockpiles while combatting China’s dominant position in the sector.

That’s not all the U.S. government may be planning to do, either. In the same month, Treasury Secretary Scott Bessent said the Trump administration intends to set price floors for a number of different critical materials. Should this move play out, it could support domestic critical material companies and minimize low-cost competition.

This whirlwind of favorable factors is making now a potentially fortuitous opportunity for building up one’s exposure to the critical minerals sector. Not only is the sector a potential balm for inflationary pressures, but these U.S. policy moves could help position critical mineral companies for success in the years to come.

SETM: A Global Perspective on Critical Minerals

The Sprott Critical Minerals ETF (SETM) can help advisors and investors amplify their exposure to the critical minerals sector. SETM looks to offer capital appreciation by tracking the Nasdaq Sprott Critical Materials Index. This index invests in a variety of different companies in the critical materials industry across the globe.

SETM’s global take on critical materials exposure comes at a fortuitous time, as well. Many advisors and investors continue to seek global diversification as a means to alleviate exposure to U.S. macroeconomic uncertainty, in case a recession plays out in the near-term.

Crucially, SETM has been putting up a dominant performance thus far this year. As of October 31st, 2025, the fund’s NAV has risen 78.54% year-to-date.

For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.

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, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL
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.

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