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Best silver ETFs to buy in 2022
Silver will always come a lacklustre second to gold when we compare prices for both metals in the physical market. However, a lesser known fact is that silver ETFs often outperform gold ETFs in the stock market. This beginners’ guide features the best silver ETFs to consider for your portfolio.
What are the top silver ETFs to buy?
Our analysts have selected five of the best silver ETFs for this year as displayed in the table below. Continue scrolling further to learn more about each.
| # | ETF symbol | ETF name |
|---|---|---|
| 1 | SIVR | Aberdeen Standard Physical Silver Shares ETF |
| 2 | SLV | iShares Silver Trust ETF |
| 3 | DBS | Invesco DB Silver Fund ETF |
| 4 | AGQ | ProShares Ultra Silver ETF |
| 5 | SIL | Global X Silver Miners ETF |
1. Aberdeen Standard Physical Silver Shares ETF (NYSEARCA: SIVR)
SIVR is a fund that seeks to track the performance of the price of the silver bullion. The fund’s shares are issued by the Aberdeen Standard Silver ETF Trust and therefore SIVR reflects the price of silver bullion less the trust’s operational expenses. The fund currently holds 44,158 bars worth over 981 million USD.
The fund’s custodian is well-established and reputed investment bank, JP Morgan and the silver is stored in JP Morgan’s secured vault in London, United Kingdom. It must be noted that since SIVR only holds physical silver, this makes it a hedge against market uncertainty but not the ideal hold option for long-term investors.
2. iShares Silver Trust ETF (NYSEARCA: SLV)
SLV is a fund that seeks to correspond with the performance of the price of silver and its only holding is physical silver. The fund currently holds 16,511 tonnes of silver that is worth over 12 billion USD. Investors can be assured that the fund was issued by Blackrock Financial Management, a highly reputed firm.
Investing in SLV can prove ideal for gaining exposure to the day-by-day movement in the price of the silver bullion. With low fees, the fund is also an affordable means of gaining access. You can use SLV to balance diversification in your portfolio and hedge against potential inflation.
3. Invesco DB Silver Fund ETF (NYSEARCA: DBS)
DBS is a fund that seeks to replicate the DBIQ Optimum Yield Silver Index Excess Return. This index is composed of futures contracts on silver. As such, the fund is intended for investors interested in a cost-effective and convenient means of investing in commodity futures.
Commodity futures are a highly speculative investment and therefore, the fund is not suited for risk averse investors. Investing in futures is volatile and can result in large losses for new investors. Though if you are a seasoned investor with a risk appetite, then there is potential for high reward when investing in DBS.
4. ProShares Ultra Silver ETF (NYSEARCA: AGQ)
AGQ is a fund that is based on two times the daily performance of the Bloomberg Silver SubindexSM. The fund deals with any or the combination of swap agreements, futures contracts, forward contracts, and option contracts. Therefore, AGQ does not directly invest in silver.
The fund is not intended for long-term investors with low risk appetites. AGQ engages with highly volatile and risky financial instruments. The fund is designed to be a short-term hold for seasoned investors who can actively stay on top of their investment.
5. Global X Silver Miners ETF (NYSEARCA: SIL)
SIL is a fund that seeks to replicate the performance of the Solactive Global Silver Miners Total Return Index. Unlike the aforementioned ETFs, the fund provides investors with access to a broad range of silver mining companies through its current 41 holdings. With a single trade of SIL, you gain a targeted play on silver mining.
Since SIL intends to reflect the performance of the silver mining industry, the mid to large cap companies in its holdings are actively engaged in some aspect of the industry: mining, refining, or exploration.When considering SIL for your portfolio, you must do your own due diligence to hedge against the risk of the fund’s small number of holdings.
Where to buy the best silver ETFs
Registering with an online broker is key for investing in an ETF. ETFs are like individual stocks, you can buy or sell them as you wish. The table below features our preference of the best brokers that offer silver ETFs.
What is a silver ETF?
In its most traditional format, it is an exchange traded fund that holds physical silver in trust by the fund manager or custodian. When you invest in a silver ETF that holds physical silver, each share is representative of a particular quantity of silver.
Other types of silver ETFs include: ETFs that hold financial instruments engaged with the performance of the price of silver as well as ETFs that hold shares in companies that operate in the silver mining industry. There are many ways of investing in silver and silver ETFs can offer as direct or indirect an investment as you prefer.
Are silver ETFs a good investment?
In a nutshell: yes. The type of silver ETF you opt for is dependent on your budget and consequent risk appetite. For instance, ETFs that hold physical silver offer investors more affordable exposure to the precious metal than investing in it directly. These ETFs are not suited for long-term investors but can prove to be a hedge against inflation in periods of market uncertainty.
Whereas, investors with higher risk appetite seeking a short-term return should opt for ETFs that hold financial instruments dealing with the performance of the price of silver. Then there are silver ETFs that hold shares in companies that operate in the silver mining industry. These offer new investors ancillary, less risky access to the market.
Therefore, different types of silver ETFs correspond to different levels of risk depending on their holdings and the nature of those holdings and you must do your own due diligence to decide on the best investment for your portfolio. You can use the links below to stay on top of the industry and best place your investment in silver ETFs.
Latest silver ETF news
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Market update: US stocks end higher after Fed minutes
Ed Yardeni now sees a 40% chance of recession
Photronics jumps 10% at key support as a perfect buy opportunity emerges
Will Albertsons outperform due to its high return on equity for low beta?
Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
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