The silver bulls are running as the metal reached its highest level since 2014, soaring 80% from its 2020 low. Now’s the time to check out silver-backed exchange-traded funds (ETFs) for asset diversification.
“Silver was long due for a catch-up with gold,” said Peter Grosskopf, chief executive officer at Sprott Inc, per a MarketWatch report. “As a much smaller market, once investor interest enters in size, its supply-side gets swamped.”
ETF investors looking to get in on the silver action can look to funds like the iShares Silver Trust (SLV) and the Aberdeen Standard Physical Silver Shares ETF (SIVR), two of the largest ETFs backed by holdings of physical silver:
- SLV seeks to reflect generally the performance of the price of silver. The Trust seeks to reflect such performance before payment of the Trust’s expenses and liabilities. It is not actively managed. The Trust does not engage in any activities designed to obtain a profit from, or to ameliorate losses caused by, changes in the price of silver.
- SIVR seeks to replicate, net of expenses, the price of silver bullion. The shares are backed by physical allocated silver bullion held by the custodian. All physical silver held conforms to the London Bullion Market Association’s rules for good delivery.
For those looking for leverage, they can look to ETFs like the VelocityShares 3x Long Silver ETN Linked to the S&P GSCI Silver Index ER (NasdaqGM: USLV) and the ProShares Ultra Silver (NYSEArca: AGQ).
A Miner in Silver
Another fund to consider as a backdoor play on silver is via miners in the ETFMG Prime Junior Silver Miners ETF (SILJ), which recently surpassed the $300 million in assets. The fund seeks investment results that correspond generally to the price and yield performance of the Prime Junior Silver Miners & Explorers Index.
“We are very proud to celebrate this milestone for SILJ, our first thematic ETF brought to market back in 2012,” says Sam Masucci, CEO, and Founder of ETFMG, in a press release. “SILJ’s outstanding asset growth is due in large part to its unique position in the market, designing an ETF that captured an underrepresented growth opportunity and being able to answer investor demand for thematic products and specifically direct access to the small cap silver commodity sector. Silver remains the most electrically conductive metal in the world and has significant industrial application, in common household items such as solar panels, medical devices, and smartphones, and is an important store of value by way of coins, bars, and jewelry.”
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