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The Best Silver ETFs to Buy in 2021

Author: Mir Kamrul

Silver ETFs are an excellent way of diversifying your portfolio without exposing yourself to significant risk. As a result, commodities, such as gold or silver, are an important addition to a stock-based portfolio. The following top ten silver ETFs are baskets of assets that help you invest passively while keeping costs low. Check out the next section to find out more about silver ETFs and how you can invest in them.

Where Can I Trade Silver ETFs?

As the broker is the medium between a trader and the marketplace, you must find a broker that offers silver ETFs. However, it is often difficult to choose a good broker, so we listed some of the best brokers below based on performance and category. 

A good broker must provide transparency and no hidden costs as the goal should be to provide the best rate to their client. A safe brokerage platform is compliant with various rules and criteria set by the international authorities to provide secure trading. Additionally, it should provide research and education support to its users, along with excellent customer service.

1
Min. Deposit
$50
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10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
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Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Payment Methods
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2
Min. Deposit
$1
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9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
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Pros:
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Payment Methods
Full regulations list:

What Are Silver ETFs?

An exchange-traded fund (ETF) allows you to invest in a basket of stocks instead of a single tradable instrument. Therefore, if you buy shares in an ETF, you hold a portion of all the underlying assets. In this case, ETFs invest in hard silver and the assets are managed by a custodian or fund manager.

How to invest in Silver ETFs?

1

Open an Account

First, you have to choose a broker and open an account. You need to provide your personal information such as your name, email, phone number, and address. Your chosen broker may also require you to upload a form of ID in order to comply with KYC (Know Your Customer) regulations.

2

Choose Silver ETFs

After opening an account, you can access the trading platform and find the list of different assets. You can make a deposit via available payment methods. This will allow you to fund your new trading account. In some cases, this process may take several days. If you opt for electronic transfers, you can get your funds instantly.

3

Place Your Trade

Now that you are all set, you can open your position. Select one of our recommended silver ETFs or choose one of your broker’s offerings. In either case, you should analyse the chosen assets and make sure you define your trading strategy before placing your trade.

Best Silver ETFs to Buy Now

There are many silver and silver-mining funds that track metal gains and losses. We have selected the following top ten silver ETFs based on their historical performance, liquidity, and leadership.

  1. Aberdeen Standard Physical Silver Shares ETF (SIVR)
  2. iShares Silver Trust (SLV)
  3. ProShares Ultra Silver (AGQ)
  4. ETFMG Prime Junior Silver Miners ETF (SILJ)
  5. Global X Silver Miners ETF (SIL)
  6. Invesco DB Silver Fund (DBS)
  7. iShares MSCI Global Silver and Metals Miners ETF (SLVP)
  8. ProShares UltraShort Silver (ZSL)
  9. Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO)
  10. iPath Silver ETN (SBUG)

1. Aberdeen Standard Physical Silver Shares ETF (SIVR)

SIVR tracks silver prices with fewer trust expenses compared to other ETFs. The issuer of this fund is Aberdeen Standard Investments. SIVR gives investors pure exposure to silver by holding the physical metal in trust. 

The metal is held by JPMorgan Chase Bank in London in a secured vault. This fund was founded on 24 July 2009. As of this writing, it is worth $982.41 million in assets with an expense ratio of 0.30%. It is one of the best Silver ETF funds to trade, especially due to its 50% returns over the last year.

2. iShares Silver Trust (SLV)

SLV was founded in April 2006 and tracks the silver spot price using silver bullion held in London. This fund is worth $17.28 billion in assets as of this writing. In 2020, this fund generated 50% annual returns with an expense ratio of 0.50%.

When it comes to physically-backed silver, SIVR and SLV are nearly identical, although SLV does charge a slightly higher expense ratio. SLV provides stability for buy-and-hold strategies.

3. ProShares Ultra Silver (AGQ)

AGQ provides twice the daily performance of silver bullion as measured by the fixing price. It was founded on 1st December 2008 by ProShares. AGQ is worth $1.55 billion with $715.54 million shares in the marketplace and an expense ratio of 0.93%. Despite its higher expense ratio, the holding cost is less important for this fund if you are looking for short-term trading

4. ETFMG Prime Junior Silver Miners ETF (SILJ)

SILJ was founded in November 2012 and issued by ETFMG. SILJ tracks a modified market-cap-weighted index of small-cap silver mining and exploration companies. The expense ratio of this fund is 0.69% with a market capitalization of $726.79 million. The index is reviewed quarterly and generated  approximately 45.53% annual return in 2020.  

5. Global X Silver Miners ETF (SIL)

SIL was founded in April 2010 and tracks a market-cap-weighted index of companies actively engaged in the silver mining industry; it was founded by Mirae Asset. This fund got a 45.33% annual return in 2020 with an expense ratio of 0.66% and is currently worth $1.22 billion. 

Expert Tip on Silver ETFs

In the financial market, investors use gold and silver as a hedge against economic uncertainty and unexpected inflation. Therefore, when an economy declines due to geopolitical uncertainty, investors switch their funds to safer assets to protect their capital. However, as with any other financial assets, it’s recommended to have a well-diversified portfolio, so you should add stocks, bonds, and other assets to your trading account.
- Mir Kamrul

Why Invest in a Silver ETF?

Owning physical silver and silver stocks have some disadvantages. For instance, companies come with high risks since the stock market can be more volatile. At the same time, investing in physical silver may not be a viable option due to the logistics involved in this process, storage fees, security, and others.

These weaknesses are mitigated when you invest in a silver ETF, especially as precious metal commodities are often used to decrease risk exposure in a stock-based portfolio. An ETF enables you to gain exposure to silver for lower costs, enjoy more liquidity, without the risks associated with stocks or physically storing silver.

Frequently Asked Questions

  1. The best silver ETF depends on your trading strategy and objectives. If you are a long-term investor, you should consider the expenses associated with a buy-and-hold strategy. Other investors might also opt for more expensive ETFs if they are active traders.

  2. Silver ETFs are an excellent addition to any portfolio for diversification purposes. Commodities help investors decrease the risks associated with stocks. At the same time, commodity prices always increase during economic uncertainty, such as the 2020 pandemic.

  3. The largest Silver ETF is the iShares Silver Trust SLV with $17.67 billion in assets.

  4. Any investor may consider silver ETFs or other commodities due to the decreased risk and higher certainty associated with them.

  5. Silver ETFs are less risky than other financial assets, so they might be great for beginners.

  6. You can trade Silver ETFs nearly 24 hours a day during the whole workweek.

  7. As of this writing, silver ETFs are worth $21.75 billion in total assets.

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