What is the Best Silver and Gold ETF?
Gold and silver offer investors many advantages; these precious metals can act as hedges against inflation as well as diversify portfolios by diversifying assets in themselves.
However, not all precious metals ETFs are created equal; some provide lower expenses based on expense ratios and spreads than others. Here are the best silver and gold ETFs based on such metrics.
SLV, the largest silver ETF, provides investors with an easy and cost-effective way to access precious metals without holding physical bullion themselves. Its holdings consist of physical silver bars stored safely within bank vaults; furthermore, its expense ratio compares favorably with its precious metals ETF peers.
This fund is also relatively liquid and boasts low daily average volume, making it simple for investors to buy or sell the ETF at or near its net asset value.
Wheaton Precious Metals, a firm that specializes in precious metals streams, is SLV’s top holding. This business model allows it to buy fixed amounts of silver at set prices through 2027 – making this company less risky than many silver mining operations. Investors looking for higher returns should consider leveraged or inverse silver ETFs like AGQ; however, such funds come with increased volatility – these investors should carefully weigh risks against rewards before making their decision.
2. Market Vectors Gold Miners ETF
The largest silver ETF provides investors with access to its upside without incurring the risks and hassle of investments such as coins or mining stocks. It boasts a relatively low expense ratio and its returns have matched that of the iShares Gold Trust over five years.
The Market Vectors fund invests in stocks of companies engaged in mining for silver and other metals. Its portfolio consists of both traditional miners as well as newcomer junior silver miners that assist established producers by tapping new sources of ore.
As with any commodity ETF, take some time comparing prices and performance before investing. Take note of expenses, storage costs and liquidity of each fund before investing. Be wary of leveraged ETFs which may increase returns by twofold or more at higher risks; also be wary of gold exchange-traded notes which track its price but do not hold physical metal in storage.
3. Market Vectors Silver Miners ETF
If you want a silver ETF that focuses on owning the metal itself, SLVR could be an ideal option. As it’s the only silver miners ETF with physical holdings in its portfolio, investors can directly own this precious resource. Furthermore, this fund offers low overlap with existing strategies on the market so it provides a differentiated product.
As with all investments, the value of your capital may fluctuate and it is possible that some or all of it could be lost. Since the Fund is non-diversified and may invest a greater percentage in single issuers than a diversified fund would, this may cause greater volatility in share prices than would otherwise occur. Please consult the prospectus for additional risk disclosures as well as their current periodic report filed with the Securities and Exchange Commission which can be contacted directly via their address below.
4. Market Vectors Gold Miners ETF
GDX is one of the more well-known gold ETFs, giving investors exposure to an array of precious metal mining companies. Launched in 2006 and trading on NYSE Arca exchange, this ETF features market cap weighting so that larger companies are given greater weight in its index.
Gold has historically performed well during times of economic instability and inflation; however, it’s important to remember that its price doesn’t always increase alongside GDX’s value.
Miners often depend on other factors besides gold prices to determine their profitability; such as costs associated with digging gold out of the ground. Their profits could be dependent on this relationship and therefore GDX can often be an unpredictable investment choice.
Categorised in: Blog