A new commodity supercycle is taking shape in the early innings of 2026. According to a recent Sprott report, Why Critical Materials Are Leading the New Commodity Cycle, a structural shift that emphasizes deglobalization, energy security, and fiscal dominance is driving the current critical minerals market.
“Commodity markets entered 2026 with a decisive change in tone,” the report noted. “After years of shrinking representation in global portfolios, commodities and resource equities have broken out above multi-year trading ranges, an action that, in our view, marks the developing stages of the new commodity bull market.”
This environment is creating a sharp divergence between natural resources and critical minerals essential to building the modern infrastructure. In turn, this creates opportunities in the Sprott Critical Materials ETF (SETM) and Sprott Active Metals & Miners ETF (METL).
Strategically Repricing Hard Assets
The report noted that markets have entered an era where hard assets are no longer simple cyclical inputs, but strategic necessities. Global governments are now prioritizing resource sovereignty and domestic supply chains to mitigate risk related to geopolitical fragmentation.
The secular growth of artificial intelligence (AI) also drives this trend. The need for an AI infrastructure buildout includes data centers, upgraded power grids, and the mass electrification of industrial processes. This in turn, propels critical minerals such as copper and uranium.
For instance, copper serves as the backbone of said electrification. In the report, Sprott underscored the need for copper miners to help meet the demand for the AI-driven industrial boom where electricity plays a critical role.
On the energy front, the focus is shifting from oil-gas to nuclear power as a viable energy source. With that, uranium enters a cycle marked by constrained supply amid higher global demand as nations are seeking energy alternatives.
Precision is Essential
In the current environment, Sprott noted that precisional pure-play exposure is a necessity when looking to capture the alpha in critical minerals. That said, SETM can serve this purpose as it includes constituents that derive at least 50% of their revenue or assets from critical materials.
Active management has been in greater demand in an ETF wrapper this year, which makes METL ideal for those seeking an even more dynamic approach. METL leverages Sprott’s deep geological and economic expertise to allow for greater flexibility when navigating jurisdictional risks and shifting fundamentals in metal markets.
Whether it’s exposure to SETM or METL, specialist expertise is highly valuable. The funds offer disciplined vehicles to capture the upside in the commodity supercycle with the transparency, cost-efficiency, and flexibility of an ETF.
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Exchange Traded Funds (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL Physical Bullion Funds:PHYS, PSLV, CEF, and SPPP.
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