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3 Silver ETFs for Q1 2022

edsl48

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SIVR, SLV, and DBS are three silver ETFs for Q1 2022​


By
VIDYA RAMAKRISHNAN

Updated December 21, 2021
Bond, Commodity, and Volatility ETFs
Silver exchange-traded funds (ETFs) closely track the price of silver and are generally more liquid than owning the precious metal itself. Like other precious metals, silver tends to be favored by investors seeking a hedge against inflation or a safe haven in times of market turmoil. Silver ETFs are generally structured as grantor trusts, a typical structure for funds whose assets are a single commodity held physically in a vault. This grantor trust structure means that each share of ownership in the ETF corresponds to a specific quantity of the underlying silver, making silver ETFs a convenient option for investors wanting to own physical bullion without the hassle of insuring and storing the metal themselves. Note that these ETFs hold silver or silver futures, not stocks of companies that mine silver.

KEY TAKEAWAYS​

  • Silver has drastically underperformed the broader equity market over the past year.
  • The three silver ETFs, ranked according to one-year trailing total returns, are SIVR, SLV, and DBS.
  • The only holding of SIVR and SLV is silver, and the holdings of DBS are silver futures.
There are 3 silver ETFs that trade in the U.S., excluding leveraged ETFs. These ETFs trade the commodity silver, as opposed to ETFs that trade silver-mining companies. Silver has dramatically underperformed the market in the past year, with the S&P GSCI Silver index providing a one-year trailing total return of -8.9% as compared with 28.9% for the S&P 500, as of Dec. 9, 2021.1 The best performing silver ETF is the Aberdeen Standard Physical Silver Shares ETF (SIVR). Below, we look at the best 3 silver ETFs, ranked by one-year trailing total returns. All numbers below are as of Dec. 13, 2021.2

ETFs with very low assets under management (AUM), less than $50 million, usually have lower liquidity than larger ETFs. This can result in higher trading costs which can negate some of your investment gains or increase your losses.

Aberdeen Standard Physical Silver Shares ETF (SIVR)

  • Performance over 1-Year: -8.0%
  • Expense Ratio: 0.30%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 593,205
  • Assets Under Management: $960.4 million
  • Inception Date: July 20, 20093
  • Issuer: Abrdn PLC

SIVR is a grantor trust that is physically backed by silver bullion held in a vault on behalf of investors. Its objective is to track the performance of the price of silver less the expenses of the operations of the trust. Because it holds only physical silver, this fund does not utilize futures contracts. Like other silver and precious metals ETFs, SIVR may be a useful safe haven during market uncertainty, but it may not be attractive as a long-term, buy-and-hold investment. The single holding of SIVR is silver.45

iShares Silver Trust (SLV)

  • Performance over 1-Year: -8.2%
  • Expense Ratio: 0.50%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 25,702,672
  • Assets Under Management: $12.3 billion
  • Inception Date: April 21, 2006
  • Issuer: Blackrock Financial Management

SLV is a grantor trust holding physical silver on behalf of investors. It tracks the price set by the London Bullion Market Association. The fund's objectives include providing investors with an inflation hedge and with exposure to the daily movements of the price of silver bullion.6 Given that it does not utilize futures contracts, the fund is not subject to backwardation or contango. The single holding of SLV is silver.7

Invesco DB Silver Fund (DBS)

  • Performance over 1-Year: -9.8%
  • Expense Ratio: 0.75%
  • Annual Dividend Yield: N/A
  • 3-Month Average Daily Volume: 5,220
  • Assets Under Management: $18.6 million
  • Inception Date: Jan. 5, 2007
  • Issuer: Invesco

DBS is structured as a commodity pool, a private investment tool structured to combine investor contributions for trading futures and commodities markets. Unlike SIVR and SLV, the fund is designed to give investors an easy way to invest in silver futures. The fund tracks the DBIQ Optimum Yield Silver Index Excess Return. This rules-based index seeks to track the price of silver futures plus the interest income of the fund's holdings in U.S. Treasuries and money market securities. Because it is exposed to futures contracts, DBS is subject to the risks associated with backwardation and contango. The fund's holdings are silver futures.89

 

solarion

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Why would anyone want digital silver? ...and if one does want digital silver then why would one want digital silver without leverage?

I cannot wrap my head around why anyone would stack shares in an ETF that literally claims they do not stack physical silver. Why not just buy silver? Then if you want digital silver get a leap on the miners...junior or otherwise. It's futures contracts that are being used to suppress the prices of metal. All people have to do is stop stacking shares and pretending they have metal.
 

ZZZZZ

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Why would anyone want digital silver? ...and if one does want digital silver then why would one want digital silver without leverage?

I cannot wrap my head around why anyone would stack shares in an ETF that literally claims they do not stack physical silver. Why not just buy silver? Then if you want digital silver get a leap on the miners...junior or otherwise. It's futures contracts that are being used to suppress the prices of metal. All people have to do is stop stacking shares and pretending they have metal.

Some accounts such as 401K and IRA do not allow to own physical. The only silver ETF that I would even consider owning is Sprott's PSLV. It is discussed several times elsewhere on the forum.
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solarion

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I recognize that the government doesn't like people thinking they own stuff and enjoys telling them what to do with their own property, yet I didn't see a mention of retirement scams in the OP and responded as such.

If people want to be guided around by the federal regime...that's their problem. Agree that PSLV is far more trustworthy than other electronic silver scams and have said so many times here on GIM2. Yet I still can't comprehend the appeal...outside of those still willing to trust huge chunks of cash in an IRA or 401k scheme that the government can seize anytime they wish.

There's no way someone should be misinterpreting silver share "ownership" as silver bullion ownership.
 

Bottom Feeder

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Y'all tryin to tell me that all the 'pretend' silver ain't the same thing??

BF
 

solarion

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PSLV, at least appears to stack silver bullion...unlike blatant scams like SLV and SIVR. Doesn't mean shares of PSLV are like having silver yourself, though Sprott claims one can swap PSLV shares for physical silver in amounts equal to 10x1000 oz silver bars...currently $79,200. I've no reason to doubt that's true.

I'm unfamiliar with Invesco's product mentioned in the OP, though it says they hold silver futures...not silver...so it seems like just another scam to draw funds away from physical metal.
 

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SLV huh, yeah skip, didn't do their research.
 

Mujahideen

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I cannot wrap my head around why anyone would stack shares in an ETF that literally claims they do not stack physical silver. Why not just buy silver?

the only reason I can see is to use margin to buy shares and sell in the money calls and generate money.

if my math is right you can generate about $30 off of a $1058 investment a month. Doing that with SLV.
 

solarion

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the only reason I can see is to use margin to buy shares and sell in the money calls and generate money.
That's a valid concept...though you'd likely be better off with leaps on silver miners(SIL and/or SILJ) if you expect a healthy move. You'll tie up less margin this way and experience larger moves. Some even use deep in the money leaps to collateralize in the money call sales.

The miners tend to outperform the underlying commodity when things heat up...so there's inherent leverage there.