If you are willing to invest in Silver ETFs, this page is for you. Because in the following article, you will find the list of top 10 Silver ETFs worth investing in 2021, including a complete guide.
The idea of investing in silver ETFs may sound more complex than buying silver coins. Usually, investors buy silver bars with 99.9% purity known as bullion, futures contracts, or large silver company stocks. But we'll show you how a silver ETF is not only a safer, more cost-effective, and tax-efficient alternative that can help you to diversify your portfolio. Silver might never hold a candle to gold, but you can surely include it in your portfolio.
Silver prices finished 2020 up by 48%, beating gold by a solid 23 percentage points. As a result, it provided the wind beneath silver exchange-traded funds (ETFs).
What Are Silver ETFs?
An exchange-traded fund (ETF) allows you to invest in a basket of stocks instead of a single trading instrument.
Therefore, if you buy an ETF, you become a partial owner of the underlying asset. There are many types of ETFs in the world where Silver ETF tracks silver prices. In that sense, if you buy a Silver ETF, you will be the owner of a portion of the Silver.
Silver ETFs, alongside gold ETFs, were introduced in the early 2000s, opening up an attractive investment vehicle for retail and institutional investors. ETFs allow for greater liquidity than holding the metal itself that is very flexible for intraday traders.
How to invest in Silver ETFs?
To trade Silver ETFs, first you have to choose a broker and open an account or sign up by providing your personal information such as your name, email, phone number, address, etc.
Choose Silver ETFs
After opening an account, you can access their trading platform and find the list of trading assets. Now you can make a deposit to the broker through the available payment methods and select your desired silver ETF from the list.
Place Your Trade
Now that you are all set, you can place an order at any Silver ETF. In ETF trading, you can always buy or sell both positions in the asset. However, you should follow a trading strategy and a risk management system to continue trading.
Where Can I Trade Silver ETFs?
As the broker is the medium between a trader and the marketplace, you must find a broker that supports 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 have transparency about their transactions and no hidden costs. Their goal should be to provide the best rate to their client. A safe and legit broker is compliant to various rules and criteria set by the international authority (regulations) to provide secure trading and good customer service.
Good brokers provide research and education support to their clients to remain more profitable. Finally, brokers must provide the best customer support to their clients via email, phone calls, social media, live chat, etc.
Best Silver ETFs to Buy Now
There are many silver and silver-mining funds that track metal gains and losses. We are preparing the following top 10 Silver ETFs list based on their historical performance, liquidity, and the strong team behind them:
- Aberdeen Standard Physical Silver Shares ETF (SIVR)
- iShares Silver Trust (SLV)
- ProShares Ultra Silver (AGQ)
- ETFMG Prime Junior Silver Miners ETF (SILJ)
- Global X Silver Miners ETF (SIL)
- Invesco DB Silver Fund (DBS)
- iShares MSCI Global Silver and Metals Miners ETF (SLVP)
- ProShares UltraShort Silver (ZSL)
- Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO)
- iPath Silver ETN (SBUG)
Aberdeen Standard Physical Silver Shares ETF (SIVR)
SIVR tracks the silver spot price with fewer trust expenses in the silver bullion. The issuer of this fund is Aberdeen Standard Investments. SIVR gives investors pure exposure to silver by holding the physical metal in trust. Each share represents a fractional interest in the trust. The metal is held with JPMorgan Chase Bank in London at a secured vault. This fund was founded on 24 July 2009, worth $982.41M in assets with an expense ratio of 0.30%. It is one of the best Silver ETF funds to trade, which recently got 50% yearly returns.
iShares Silver Trust (SLV)
SLV was founded on 21 April 2006 that tracks the silver spot price using silver bullion held in London. This fund is worth $17.28B in assets. In 2020 this fund made 50% annual returns with an expense ratio of .50%.
When it comes to physically-backed silver, SIVR and SLV are nearly identical, though SLV does charge a slightly higher expense ratio. SLV provides stability for buy-and-hold strategies.
ProShares Ultra Silver (AGQ)
AGQ provides 2x the daily performance of silver bullion as measured by the fixing price, in U.S. Dollars. It was founded on 1st December 2008, and the issuer of this fund is ProShares.
AGQ is worth $1.55B with $715.54M shares at the marketplace and an expense ratio of 0.93%. Despite its high expense ratio, the holding cost is less important for this fund, considering the holding design for very short periods.
ETFMG Prime Junior Silver Miners ETF (SILJ)
SILJ was founded on 28 Nov 2012 and issued by ETFMG. SILJ tracks a modified market-cap-weighted index of small-cap silver mining and exploration companies.
The expanse ratio of this fund is 0.69% with the market capitalization of $726.79M. The index is reviewed quarterly that got approx. 45.53% annual return in 2020.
Global X Silver Miners ETF (SIL)
SIL was founded on 19 April 2010, which tracks a market-cap-weighted index of companies actively engaged in the silver mining industry issued by Mirae Asset. This fund got a 45.33% annual return in 2020 with an expense ratio of 0.66% and currently worth in assets $1.22B.
Invesco DB Silver Fund (DBS)
DBS was founded on January 5, 2007, and issued by Invesco. This fund has 1-Year Trailing Total Returns of 48.1% with an Expense Ratio of 0.75%.
DBS tracks an index of silver futures contracts. It optimizes its contract selection based on the futures curve's shape to minimize contango, which has $30.22M shares at the marketplace.
iShares MSCI Global Silver and Metals Miners ETF (SLVP)
SLVP was created January 31, 2012, and Issuing Company is Blackrock.
This fund got 1-Year Trailing Total Returns of 61.48% with an Expense Ratio of 0.39%.
SLVP tracks a market-cap-weighted index of companies that earn most of their revenues from silver mining with 269.46M shares at the marketplace.
ProShares UltraShort Silver (ZSL)
ZSL was founded on December 3, 2008, and the issuing Company is ProShares. It provides -2X daily performance of silver bullion as measured by the fixing price, in U.S. Dollars, for delivery in London.
With an expense ratio of 0.95%, this fund has typically traded with decent volume, but spreads can be wide at times.
Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO)
SLVO was created April 17, 2013, and Issued by Credit Suisse Group AG. This fund got 1-Year Trailing Total Returns of 23.51% with an Expense Ratio of 0.65%.
SLVO offers the returns of a covered-call strategy comprising long shares of a physical silver ETF (SLV) and short 1-month call options with a strike price of 106% of SLV.
iPath Silver ETN (SBUG)
SBUG was started on October 8, 2019, issued by Barclays Capital Inc. This fund has 1-Year Trailing Total Returns of 45.98% with an Expense Ratio of 0.00%.
SBUG tracks the Barclays Silver 3 Month Index Total Return by rolling specified near term silver futures contracts.
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 downturns due to the geopolitical uncertainty, investors switch their funds to safe haven assets to ensure funds safety. Gold has a greater appeal as a safe haven asset and jewelry while silver is mostly used in the industrial sector. Therefore, if you invest in silver, you are in the industry where demand never ends.
Why Invest in a Silver ETF?
Owning physical silver or owning silver stocks have some disadvantages. These weaknesses are mitigated when you trade on a silver ETF.
In the case of bullion, you not only have to pay commissions on purchases and sales but also bear storage costs and risks. You'd also need to cough up a greater sum of money to own a chunk of silver as compared to shares of an ETF.
An ETF offers you the middle ground, enabling you to gain exposure to silver for low costs with ample liquidity, or the ability to sell to raise cash. Therefore, owning an ETF is your best bet to invest in silver unless you desire physical possession of the metal.
Frequently Asked Questions
The number one silver ETF depends on the availability and traders’ requirements from the market and how they implement their knowledge over the price.
The good or bad depends on how much money you can invest and the return expectation over a certain period.
The largest Silver ETF is the iShares Silver Trust SLV with $17.67B in assets.
Both retail investors and Wall Street investors can buy and sell the asset.
ETFs are less risky than traditional mutual fund trading that encourages beginner investors to invest through some proper investment plans and strategies.
You can trade Silver ETFs nearly 24 hours a day during the whole workweek.
Silver ETFs have total assets under management of $21.75B with other 10 ETFs traded on the U.S. markets.