Silver went beyond all expectations over the weekend, punctuating its year-end rally with a new all-time high above $80 per ounce as the weaker dollar and geopolitical tensions left investors hungry for safe-haven assets.
As a result, silver ETFs are presenting themselves as ever more appealing investment opportunities for those looking for exposure to the precious metal. Here are Finbold’s two best picks.
1. iShares Silver Trust (SLV)
No silver ETF discussion is complete without mention of iShares Silver Trust (NYSEARCA: SLV), the largest fund of its kind with circa $36 billion in assets under management (AUM).
The fund holds over 510 million ounces of silver in trust, with the goal to mirror the LBMA Silver Price benchmark.
With its 30-day median bid-ask spread of about 0.02%, SLV offers strong liquidity, albeit it has a slightly higher expense ratio of 0.5%.
At the time of writing, SLV was at $72.12, up 19% on the week and no less than 164% on the year-to-date chart.
2. ProShares Ultra Silver (AGQ)
For those with a slightly higher risk tolerance, ProShares Ultra Silver (NYSEARCA: AGQ) might be a more alluring option.
Namely, the fund seeks to provide double the daily performance of the Bloomberg Silver Subindex, which tracks silver futures contracts rather than the spot price of the metal.
As such, AGQ offers leveraged exposure through index swaps, not by holding physical silver.
This approach incurs a 0.95% expense ratio, and the leverage resets on a daily basis, resulting in compounded returns if held for multiple periods.
Thus, AGQ is more intended for short-term tactical positioning, not for long-term buy-and-hold investing.
By press time, AGQ was valued at $199.74, having gained 40% over the week and a whopping 466% year-to-date.
Overall, both funds offer distinct avenues for gaining exposure to silver’s upside. Specifically, SLV provides straightforward, physically backed access to the metal, while AGQ caters to more experienced traders looking to capitalize on short-term price swings with leverage.
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