We have mentioned persistent and bullish call buying in the largest silver exchange traded fund in recent recaps throughout January and February, and yesterday was no exception as the metal continued its recent rally and call buyers were again present.
The iShares Silver Trust (NYSEArca: SLV) has rallied nearly 23% year to date and is approaching its 200-day simple moving average of $34 a share, a level not touched since last September. [What Silver ETFs are Saying About Precious Metals]
In ETF options, call buying in SLV has been a predominant theme for much of 2012 as the metal has rallied an impressive 24% year to date. [List of Silver ETFs]
Silver miner ETFs have also been moving higher this year. Access to the silver miners space was not possible in the ETF universe until April of 2010 when Global X Silver Miners (NYSEArca: SIL) debuted, and the ETF tracks the Solactive Global Silver Miners index.
This product has a global focus, concentrating on equities that derive revenues from silver mining activities including refining and exploration. [Silver ETFs Keep Pace with Metal’s Rise]
Currently, SIL is heavily weighted toward Canada, with 51.15% of its holdings being domiciled there, and the remaining holdings are in Latin America (25.34%), Europe (13.39%), the United States (9.62%), and Australia (0.32%).
Year to date, SIL has rallied 16.25% and it has attracted significant investor interest since its debut, gathering over $355 million in assets. As with anything in the ETF marketplace, success often spawns interest and innovation, and that said, SIL is no longer the only way to play Silver Miner equities.
The iShares MSCI Global Silver Miners (NYSEArca: SLVP) launched on January 31 of this year, and tracks the MSCI ACWI Select Silver Miners Investable Market Index and will have index composition and weightings differences head to head with SIL.
It remains to be seen how the fund competes from a performance standpoint in a live setting. One thing is clear however, as silver, the metal continues its luster, assets in terms of money flows will likely be in motion toward Silver Miners as well.
Global X Silver Miners