(SETM) Sprott Energy Transition - Ratings and Ratios

The Sprott Energy Transition Materials ETF (NASDAQ:SETM) is a non-diversified fund that primarily invests in companies critical to the energy transition. It allocates at least 80% of its total assets to securities included in its underlying index. The index targets firms generating at least 50% of their revenue or holding significant assets tied to energy transition materials. These materials include lithium, cobalt, nickel, copper, and graphite, which are essential for renewable energy technologies, energy storage, and electric vehicle production. The funds focus spans mining, exploration, development, recycling, refining, and smelting activities, as well as companies where energy transition materials represent a substantial portion of their assets.

The ETF provides exposure to a concentrated portfolio of companies directly involved in the production and supply of critical materials for clean energy technologies. Its holdings include miners, recyclers, and refiners, reflecting the entire value chain of energy transition materials. The funds structure allows investors to gain exposure to the growing demand for these materials amid global decarbonization efforts.

3-Month Forecast: Based on the funds technical and fundamental profile, the outlook suggests moderate volatility. The SMA 20 and SMA 50 are trending above the last price, indicating potential bearish momentum. However, the ATR of 0.38 signals relatively low volatility, suggesting price movements may remain contained. The funds AUM of $32.01M reflects a targeted exposure to energy transition materials, aligning with the growing demand for clean energy technologies. Over the next three months, the ETF may experience sideways trading with potential downside risk if broader market conditions deteriorate.