Last week, silver prices climbed above $25.00 per ounce--a new three-month high--after the Bureau of Labor Statistics (BLS) revealed that the Consumer Price Index for October expanded by 6.2% year over year, its largest increased since 1990.
After a short correction on Monday, the white metal climbed today to around $25.25 per ounce. The metal has recovered strongly after hitting its $21.40 per ounce year-to-date low in September. Furthermore, the passage of the bipartisan infrastructure bill is expected to boost the silver market due to the white metal’s usage in electric vehicles (EVs), batteries, fuel cells, and plug-in charging stations, among other industrial uses. Goldman Sachs expects silver prices to hit $33 an ounce.
Given this backdrop, we think silver ETFs iShares Silver Trust (SLV), Global X Silver Miners ETF (SIL), and Aberdeen Standard Physical Silver Shares ETF (SIVR) could be solid bets now.
Click here to check out our Gold and Silver Industry Report for 2021
iShares Silver Trust (SLV)
SLV aims to reflect the performance of the price of silver before payment of the trust’s expenses and liabilities and is not actively managed. In addition, the trust does not engage in any activities to profit or reduce losses caused by silver price changes. The fund is appropriate for short-term traders.
SLV tracks the LBMA Silver Price ($/ozt) and has an expense ratio of 0.50% versus the 0.44% category average. With $13.27 billion assets under management, SLV’s fund inflows were $53.86 million over the past month. And its 12.16% past month’s return is higher than the 6.91% category average. SLV has a1.16 beta.
The ETF has gained 7.7% over the past month and 5.8% over the past three months, to close yesterday’s trading session at $23.24. SLV has a 22.28 NAV.
Global X Silver Miners ETF (SIL)
SIL seeks to provide investment results and price and yield performance corresponding to the Stuttgart Solactive Global Silver Miners Total Return Index before fees and expenses. The fund invests at least 80% of its total assets, in securities of the index, in ADRs and GDRs.
With $1.17 billion assets under management, SIL’s top holdings include Wheaton Precious Metals Corp. (WPM) with a 22.84% weighting, Polymetal International PLC (POLY.L) with an 11.10% weighting, and Pan American Silver Corp. (PAAS) with a 9.48% weighting. It has a 0.65% expense ratio versus the 0.46% category average. Over the past month, its fund flows came in at $11.99 million.
SIL pays a $0.91 annual dividend, which yields 2.20% at the prevailing share price. Its average four-year yield currently stands at 1.27%. In addition, its dividends have increased at a 420.1% CAGR over the past three years. Moreover, SIL has had three consecutive years of dividend growth. SIL has a 1.02 beta.
SIL has gained 7.8% over the past month and 3.1% over the past five days to close yesterday’s trading session at $41.63. It has a 39.74 NAV .
Aberdeen Standard Physical Silver Shares ETF (SIVR)
SIVR tracks the price of physical silver bullion (silver ETPs), with shares holdings intended to constitute a cost-saving means of investing in silver, allowing investors access to alternative participation in the silver market through the securities market.
Tracking the LBMA Silver ($/ozt) index, SIVR has $1.02 billion assets under management. It has a 0.30% expense, which is significantly lower than the 0.44% category average. Over the past month, SIVR’s fund flows came in at $11.54 million. Its 12.18% past month’s return is higher than the 6.91% category average.
SIVR has gained 7.6% over the past month to close yesterday’s trading session at $24.18. It has gained 3.2% over the past five days. It has a 1.18 beta and a 23.20 NAV.
Click here to check out our Gold and Silver Industry Report for 2021
SLV shares were trading at $22.98 per share on Tuesday afternoon, down $0.26 (-1.12%). Year-to-date, SLV has declined -6.47%, versus a 26.93% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
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