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The Sasfin Precious Metals Yield portfolio is designed for investors who wish to gain exposure to the intrinsic value inherent in precious metals, with the notion that returns may be uncorrelated to traditional asset classes. It aims to achieve this by using a combination of active and passive strategies, diversified across the royalty, mining and physical sectors. In this reading, I give an overview of some of the ETFs held in the Sasfin PMY portfolio.

VanEck Junior Gold Miners (GDXJ)

Overview of ETF

Number of holdings: 100

Top holdings: PAN American Silver Corp, Yamana Gold, Evolution Mining, Merdeka Copper Gold, Endeavor Mining, SSR Mining, B2Gold, Pretium Resources, First Majestic, Alamos Gold.

Why are we interested in this ETF?

GDXJ tracks a market-cap-weighted index of global gold-and-silver mining firms with special focus on small caps. Its asset portfolio consists of small gold mining companies, some of which are in the early exploratory stages with upside potential. It is a highly liquid ETF with high beta exposure to gold prices.

Global X Uranium (URA)

Overview of ETF

Number of holdings: 49

Top holdings: Cameco, Sprott Physical, NexGen Energy, NAC Kazatomprom, Paladin Energy, Energy Fuels, Denison Mines, Uranium Energy, Yellow Cake, Mitsubishi Heavy.

Why are we interested in this ETF?

URA is a tactical and strategic play on uranium mining and the production of nuclear weapons. The world’s shift to carbon-neutrality presents an emerging opportunity for nuclear power as it is a zero-emissions clean-energy source. As governments pledge to reduce fossil fuel reliance, nuclear could be a viable bridge while more renewable capacity is built. The ETF provides access to a basket of companies involved in uranium mining and producing nuclear components in a single trade. Uranium has woken up to the wider energy rally.

iShares Silver Trust (SLV)

Why are we interested in SLV?

The iShares Silver Trust gives exposure to day-to-day movement of the silver bullion price. It is a convenient and cost-effective way to access physical silver. SLV serves as a form of portfolio insurance that helps protect against inflation and is a portfolio diversifier.

Website: https://www.ishares.com/us/

Physical Platinum Shares ETF (PPLT)

Why are we interested in PPLT?

PPLT serves as a cost-effective and convenient access to physical platinum. It offers transparency as the metal is held in allocated bars and a bar list is posted daily on abrdn.com/usa/etf. The metal is held in London, UK at a secured vault of J.P. Morgan Chase Bank located in Switzerland. The vault is inspected twice per year (including at random) by the Inspectorate International, a leading physical commodity auditor.

Website: https://www.abrdn.com/en-us/

iShares Physical Gold ETC (IGLN)

Why are we interested in IGLN?

IGLN tracks the gold spot price. The gold bars are sourced responsibly and meet the London Bullion Market Association (LBMA) responsible gold criteria. The gold bar allocation is secure and segregated.

Website: https://www.ishares.com/uk/

About the Author

Lwando Ngwane
Equity Analyst, Sasfin Wealth