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We have identified and compared the five best silver ETFs on the market.
One of these physically-backed silver ETFs might help your portfolio combat rising inflation. Let’s get started.
Best Silver ETFs: At A Glance
Here are the five best silver ETFs to buy or trade in 2022:
- iShares Silver Trust (SLV)
- Aberdeen Standard Physical Silver Shares ETF (SIVR)
- Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO)
- ProShares Ultra Silver (AGQ)
- ProShares UltraShort Silver (ZSL)
Please note that shares in these funds are not redeemable for actual silver.
Ok, now let’s analyze each of them individually.
#1. iShares Silver Trust (SLV)
- 1-Year Performance: -6.55%
- Expense Ratio: 0.50%
- Annual Dividend Yield: N/A
- AUM: $12.6 billion
- Three-Month Average Daily Volume: 23,042,060
- Inception Date: 2006
The iShares Silver Trust provides convenient exposure to the day-to-day price movements of silver bullion.
SLV is the oldest and largest silver exchange-traded fund on the market, with over $12 billion in assets under management.
Those are physically-backed assets, too. The Trust’s silver is held securely at its vault premises in London and New York.
While SLV is the most expensive physically-backed silver ETF, its superior liquidity might be worth the extra 20 basis points.
As you can see above, SLV trades a ton of volume, over 23 million, which results in less slippage on trades as investors move their money in and out of the fund.
Investors commonly turn to silver or gold ETFs as a safe haven during periods of market uncertainty.
So, a highly liquid fund with little slippage is preferred for most, especially if large amounts of capital are being moved.
#2. Aberdeen Standard Physical Silver Shares ETF (SIVR)
- 1-Year Performance: -6.30%
- Expense Ratio: 0.30%
- Annual Dividend Yield: N/A
- AUM: $1.0 billion
- Three-Month Average Daily Volume: 609,633
- Inception Date: 2009
The Aberdeen Standard Physical Silver Shares ETF is the SLV fund we just covered.
It is physically backed, holds only silver, and even uses the same LBMA Silver Price Index as SLV for accurate market pricing on silver bullion.
Fees and liquidity are the two main differences between SLV and SIVR.
SLV charges a 0.50%expense ratio, while SIVR charges 0.30%.
SLV is also a much larger fund that trades with significantly higher daily volume.
The three-month average daily volume of SLV is 23,042,060 compared to 609,633 from SIVR.
Aberdeen Standard’s transparency is also worth mentioning.
They publish bi-annual vault inspection letters that third-party auditors conduct and release a comprehensive list of all the silver bars kept in the vault.
While we don’t expect BlackRock to run away with your silver, these measures from Aberdeen Standard may provide some additional peace of mind.
#3. Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO)
- 1-Year Performance: -19.69%
- Expense Ratio: 0.65%
- Annual Dividend Yield: N/A
- AUM: $221 million
- Three-Month Average Daily Volume: 450,373
- Inception Date: 2013
The Credit Suisse X-Links Silver Shares Covered Call ETN provides exposure to an index that seeks to “implement a ‘covered call’ investment strategy on SLV shares.”
ETN stands for “exchange-traded notes,” which are senior unsecured debt securities that Credit Suisse issues.
This fund attempts to generate income through a variable monthly coupon based on the options premiums (if any) generated by monthly sales of SLV call options.
It’s a covered call because SLVO owns the underlying asset, SLV shares.
If SLV shares end up at or below the monthly strike price, Credit Suisse’s return is increased (compared to long-only SLV) because it collects a premium paid by the buyer.
If SLV shares end up above the strike price, then SLVO returns are capped at a price equivalent to the strike plus the premiums received.
This dynamic is why SLVO potentially lowers the downside risk of owning SLV shares outright in certain market conditions.
However, SLVO can underperform a long-only investment during an upward-trending silver market. The same forces apply to the downside – losses can be magnified.
The 0.65% expense ratio pays for all of this work.
ETN structures are not for everyone. We recommend investors only use them if they’re comfortable with the risks.
#4. ProShares Ultra Silver (AGQ)
- 1-Year Performance: N/A
- Expense Ratio: 0.93%
- Annual Dividend Yield: N/A
- AUM: $537 million
- Three-Month Average Daily Volume: 849,119
- Inception Date: 2008
The ProShares Ultra Silver seeks a 2x return of the Bloomberg Silver Subindex (BCOMSI) for a single day.
This is a rolling index, meaning that it does not take physical possession of any silver. It just tracks the price of futures contracts.
AGQ is a leveraged fund designed for day-trading and not meant to be held longer than a day.
If the commodity silver goes up 2% on the day, AGQ will be up 4% that day.
If silver goes down 2% on the day, AGQ will be down 4% that day.
The leverage comes at a steep 0.93% expense ratio.
#5. ProShares UltraShort Silver (ZSL)
- 1-Year Performance: N/A
- Expense Ratio: 0.95%
- Annual Dividend Yield: N/A
- AUM: $243 million
- Three-Month Average Daily Volume: 200,666
- Inception Date: 2008
The ProShares UltraShort Silver is exactly the opposite of AGQ; it is meant to deliver -2x the return of the Bloomberg Silver Subindex (BCOMSI) for a single day.
ZSL is for traders looking to short silver with 2x leverage in a single day.
Like AGQ, holding periods of greater than one day will likely result in significantly different returns from the target return due to the compounding of daily returns.
We think that ACQ and ZSL should only be used by advanced traders familiar with leverage.
Silver ETF Alternatives
There are other precious metal commodity ETFs for investors seeking an inflation hedge.
These include platinum and gold ETFs that are similarly structured as the silver trusts mentioned in this article.
BlackRock also offers several gold and silver miners ETFs, such as the iShares MSCI Global Gold Miners ETF (RING) and the iShares MSCI Global Silver & Metals Miner ETF (SLVP).
Best Silver ETFs: Frequently Asked Questions
Which is the best silver ETF to buy?
The best silver ETFs to buy is the iShares Silver Trust (SLV) and the Aberdeen Standard Physical Silver Shares ETF (SIVR) based on their performance, fees, and liquidity.
Is a silver ETF a good investment?
A silver ETF is a good investment during times of economic uncertainties. Investors tend to turn towards hard assets, such as silver, during these times. A fund designed to track the spot price of this precious metal may perform well in this scenario.
Is there any silver ETF?
There are six silver ETFs that track the investment returns of silver. Three of them are physically backed (SLV, SIVR, and DBS), and the other three use leverage or some type of derivative strategy (AGQ, ZSL, SLVO).
What is the main silver ETF?
The main silver ETF is the iShares Silver Trust (SLV). It has $12.6 billion in assets and a three-month average daily trading volume of +23 million.
Bottom Line: Best Silver ETFs
Hopefully, you’re now aware of the pros and cons of each of the top silver ETFs.
This article is for informational purposes only, and it is not intended to be investment advice. Read our editorial guidelines and public equities research methodology to learn more about how we selected the best silver ETFs.
