What ETF Has Gold and Silver?
ETFs offer investors a quick and cost-effective way to diversify their portfolio quickly. Instead of purchasing physical metals such as gold bars and coins, which require space and storage costs, investors can purchase ETFs that track precious metal prices instead.
One option is the iShares Silver Trust ETF (SLV), which closely tracks the price of silver. As this fund is highly liquid, making purchasing and selling shares simple.
iShares Silver Trust ETF (SLV)
SLV attempts to reflect generally the performance of silver prices minus fees and expenses. Each share represents a fractional beneficial ownership interest in physical silver held by SLV.
As with its gold counterpart GLD, this ETF is an attractive investment choice for investors seeking to diversify their portfolio with precious metals. Investors in this ETF will profit from rising silver prices but may lose out if prices decline.
Silver differs from gold when it comes to pricing; investors in SLV should take note that its trustee does not use hedging techniques to mitigate losses caused by price decreases.
Investing in this ETF may not offer the same return as buying physical bullion, but its convenience allows traders to trade at any time of day or night. Market Chameleon’s SLV option chain displays current trading volume for call and put options by expiration.
iShares Gold Trust ETF (IAUM)
Gold has long been considered an asset that provides safe haven investment options and diversifies one’s portfolio. Available through numerous brokerage platforms, however, storage costs and spreads may be higher when buying and selling it directly. Exchange-traded funds (ETFs) provide more cost-effective and convenient exposure to this precious metal.
The Trust seeks to replicate generally the performance of gold prices without including its expenses and liabilities as an influence. Shares issued are backed by gold held by its Custodian in one or more gold accounts that is identified on their books as property belonging to the Trust.
Retail investors may purchase and sell Baskets of iShares Gold Trust ETF Micro (IAUM US) shares through brokerage accounts. Each Basket will be created and redeemed for an amount of physical gold determined by the Trust, with approval received when an executed Purchase and Sale Agreement meets Sponsor and Trustee procedures.
VanEck Vectors Gold Miners ETF (GDX)
As its name implies, this ETF tracks a market-cap weighted index of gold mining companies (GDX). Since miner shares tend to correlate closely with gold prices, investing in this ETF allows investors to speculate on this precious metal without needing to physically purchase physical gold.
Note, though, that GDX isn’t just a pure-play gold fund; it also includes firms mining other precious metals like silver and copper mining companies; therefore it could go in different directions than gold prices.
GDX has experienced immense popularity recently, drawing in inflows of over $725 million since August. Investors may be drawn to its low correlation to the US dollar and potential role as an inflation hedge.
VanEck Vectors Silver Miners ETF (SLV)
As its name implies, this ETF stores physical silver. Like GLD and iShares Gold Trust ETF (GDX), this fund usually holds the metal in London Good Delivery bars. You may take delivery of bullion through this fund; however, to do so will require becoming an authorized participant with at least 50,000 shares.
Like its sister fund GDX, SLV employs a passive management strategy. This means that rather than trying to capture specific market moves, SLV attempts to replicate as closely as possible the performance of an index composed of silver mines.
Pan American Silver represents 23% of SLV’s assets. Furthermore, SLV is exposed to junior silver miners who specialize in finding and assessing possible silver deposits for profitability; unlike Global X’s SIVR Fund which only trades around one million shares daily versus more than 19 million for SLV.