The largest silver exchange-traded fund, iShares Silver Trust ETF (SLV) , has jumped 14% this year, hitting a 52-week high in the process, beating the gold market proxy SPDR Gold Shares ETF (GLD) ’s 11% gain and the 9% gain in the stock benchmark SPDR S&P 500 ETF Trust (SPY) .
In this week’s ETF spotlight, we take a closer look at the high flying precious metals ETF , as well as the other top silver ETFs , and the potential benefits and risks of investing in them.
How Does the SLV ETF Work?
The SLV ETF seeks to mirror the performance of the silver spot price as closely as possible. It does this by physically holding silver bullion in its London reserves. In theory, the price of one SLV share should reflect the value of the underlying silver that the trust holds.
Investors can buy and sell SLV shares on the stock exchange like any other stock. The price of an SLV share fluctuates throughout the trading day based on supply and demand.
Benefits and Risks of Investing in Silver ETFs
Investing in silver ETFs can offer several benefits, such as diversification and liquidity, but these funds also have associated potential risks including volatility and tracking error. Here are more details on the benefits and risks of investing in these precious metals funds:
Benefits of Silver ETFs
Risks of Silver ETFs
List of Top Silver ETFs by AUM
|
Ticker |
Fund |
Expense Ratio |
AUM |
YTD Return |
|
SLV |
iShares Silver Trust |
0.50 |
$11.5B |
13.54% |
|
SIVR |
Abrdn Physical Silver Shares ETF |
0.30 |
$1.2B |
13.66% |
|
SIL |
Global X Silver Miners ETF |
0.65 |
$978M |
7.37% |
|
SILJ |
Amplify Junior Silver Miners ETF |
0.69 |
$795M |
10.20% |
|
SLVP |
iShares MSCI Global Silver and Metals Miners ETF |
0.39 |
$194M |
11.79% |
Data as of April 3, 2024.
Bottom Line on Investing in SLV and Silver ETFs
Investing in silver ETFs provides exposure to the price of silver without having to directly hold the precious metal itself. These funds can offer diversification and liquidity benefits, but investors should be aware of the risks, including volatility, market risk and tracking error, as well as the potential higher taxation of silver ETFs.
Investors should carefully consider these factors and conduct thorough research before buying shares of silver ETFs.
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