Select ETFs: Silver
Silver ETFs (Exchange-Traded Funds) are similar to Gold ETFs in that they provide a convenient and cost-effective way to invest in silver without physically owning or storing the metal. Silver can serve as a diversification tool in an investment portfolio and may provide a hedge against inflation and economic uncertainty.
Silver is often viewed as a more industrial metal than gold and can be impacted by factors such as changes in technology, energy, and manufacturing sectors. Investing in silver ETFs can provide an investor with exposure to the price of silver and potential benefits such as diversification and inflation protection.
Best for Trading
Expense Ratio: 0.50%
SLV gives investors direct exposure to silver by physically holding the metal in vaults in London. As such, investors get exposure to the spot price of silver (as determined by the London Silver Fix), net of fund expenses. Because this fund is considered a collectible for tax purposes, taxes on long-term gains are quite high. Nevertheless, SLV offers stability for buy-and-hold strategies.
This ETF uses a physically-backed methodology, an idea popularized by ETFs as investors grew tired of the complexity of futures contracts and the dangers associated with them. By using this physically-backed strategy, this fund is able to eliminate the problems of contango and backwardation, and provide investors with a more realistic price for the metal it holds. Silver, along with other precious metals, is most often used as an inflation hedge or to protect against volatile equities. This fund doesn’t work very well in a long-term buy-and-hold scenario, but can be a good option for investors looking for a safe haven in times of market uncertainty.
Best for Holding
abrdn Physical Silver Shares ETF (SIVR)
Expense Ratio: 0.30%
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 in a secure vault at JPMorgan Chase Bank in London. This provides a convenient way to invest in silver. It has tracked the spot price of silver perfectly. It is important to note that to determine the NAV of the fund, the value of silver is based on the price of an ounce as determined by the London Bullion Market Association at approximately 12:00 noon London time divided by the number of shares outstanding for the fund at 4:00 p.m. New York time each trading day. In addition, investors should be aware of the tax treatment as SIVR is deemed a collectible item by the IRS.
This ETF uses a physically-backed methodology, an idea popularized by ETFs as investors grew tired of the complexity of futures contracts and the dangers associated with them. By using this physically-backed strategy, this fund is able to eliminate the problems of contango and backwardation, and provide investors with a more realistic price for the metal it holds. Silver, along with other precious metals, is most often used as an inflation hedge or to protect against volatile equities. This fund doesn’t work very well in a long-term buy-and-hold scenario, but can be a good option for investors looking for a safe haven in times of market uncertainty.
When it comes to physically backed silver, SIVR and SLV are nearly identical, although SIVR charges a slightly lower expense ratio.
