ETF Trends
ETF Trends

Silver prices have been in an amazing upward trajectory even though the market corrected Tuesday, but exchange traded funds (ETFs) that invest in silver miners have been stuck in a range.

The disparity is a reminder that ETFs that hold miner stocks don’t always trade in lockstep with metals prices.

The Global X Silver Miners ETF (NYSEArca: SIL) was up 5.4% year to date through April 25, according to investment researcher Morningstar. Meanwhile, iShares Silver Trust (NYSEArca: SLV), which holds silver bullion, gained 51.9%. However, the silver ETF pulled back more than 3% in morning trade Tuesday.

The difference can be partly explained by the fact that investing in miner stocks introduces equity-like risks into a portfolio.

In gold, it’s the same story. Market Vectors Gold Miners ETF (NYSEArca: GDX) is trailing SPDR Gold Shares (NYSEArca: GLD).

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