What is the Best Silver and Gold ETF?
Investment options in precious metals are numerous. Potential investors may purchase physical bullion or invest in mining companies that produce these precious materials.
ETFs that invest in physical gold and silver tend to closely track their prices; however, investing in physical metals carries with it risks like storage fees and taxes that must be considered when investing.
iShares Silver Miners ETF (SLV)
Silver ETFs offer investors a more efficient means of investing in silver than purchasing physical bullion, which can be both costly and risky to store while being difficult to sell at a fair price when required.
iShares’ SLV ETF is one of the oldest and largest silver-backed ETFs. The fund tracks the spot price of silver less expenses; each share represents a fractional beneficial ownership interest in an over 325 Million Ounce Trust held within it.
SLV is an ETF with an extremely concentrated portfolio; nearly half its assets are held by Wheaton Precious Metals, Pan American Silver and Hecla Mining alone – this may cause diversification issues for some investors. ETFMG’s Prime Junior Silver Miners ETF (SILJ), on the other hand, may experience higher volatility than SLV due to lower trading volume and narrow focus investments often experiencing greater fluctuations. Investors should carefully evaluate all investment objectives, risks, charges and expenses of any ETF before investing.
iShares Silver Miners ETF (SLVP)
Since exchange-traded funds (ETFs) first hit the scene in 1993, investors have an array of choices when it comes to investing. ETFs exist across a range of asset classes including commodities, bonds and stocks – for those interested in silver specifically there are various ETFs available but one of the more popular choices for exposure is iShares MSCI Global Silver Miners ETF (SLVP).
Although smaller than its gold equivalent, this ETF offers several tailwinds to push it higher by 2023. It tracks a market-cap weighted index of global companies that earn their majority revenue from silver mining – Pan American Silver and Hecla Mining currently hold more than 5% each. Furthermore, this ETF features a significantly lower expense ratio at 26 basis points than Global X; investors can purchase shares through several brokerage firms including WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE among others.
Global X Silver Miners ETF (SIL)
SIL is an exchange-traded fund designed to monitor the performance of global companies involved in silver mining. The aim is to achieve investment results which closely correspond with those seen on the Solactive Global Silver Miners Total Return Index in terms of price and yield performance before fees and expenses.
Passively managed ETFs follow an entire sector or strategy rather than picking individual stocks that may outshone others. While passive approaches tend to be simpler and cheaper than active strategies, investors must remain aware that there may be additional risks involved with investing in this type of fund.
To conduct a backtest on an individual SIL options strategy, click either bid or ask price in the table above and Market Chameleon will open up a window allowing you to input various parameters that test out your theoretical option trades. Furthermore, our SIL Options Chain Historical Table offers insight into historical volume of options trades.
Abrdn Physical Precious Metals Basket Shares ETF (GLTR)
For investors who would like to diversify their portfolio without incurring a premium in buying bullion products, precious metals ETFs offer an ideal alternative. These funds provide exposure to gold, silver, platinum and palladium with lower expenses compared to purchasing physical bullion directly.
This fund stands out from its peers as it holds physical gold, silver, platinum and palladium in addition to having an extensive track record through BlackRock (BLK), providing it with considerable name recognition.
Technical analysis suggests this ETF may be sending out a buy signal with its recent move above its 50-day moving average, perhaps signalling it is about to break higher and add further momentum to broader markets. Active traders could consider investing in this ETF should market uncertainty resurface. For more information regarding this fund please visit its GLTR profile here.