However, SIL and SILJ merit consideration because, much like their gold miners ETF counterparts, these ETFs are intimately correlated to the price of the commodity their holdings extract from the earth. Since the start of the number, SILJ and SIL are up 11% and 11.5%, respectively.
That is to say it is not reasonable to expect SILJ to go on a tear if silver futures are falling. However, SILJ is proving that when silver rips higher, SILJ can often positively overshoot the metal’s move. It is that positive leverage to rising silver prices that helps SILJ join a long list of small ETFs that have delivered outsized performance. [Big Things From a Small Silver ETF]
Silver Chart
Chart Courtesy: Kimble Charting Solutions
Tom Lydon’s clients own shares of GLD.