Futu Research | ETF Investment Research
【Silver ETFs USA Equities Silver Investment Review
The growth trend in the CSI Commodity Equity Index, which represents metals, can be similarly strong in the near term. In a related location, the related Silver ETF is high in the water rig.
Why are bulk commodities worth paying attention to?
The CSI Commodity Equity Index works as a different type of investment, which can play a unique role in multi-dollar investments.
First, commodity price volatility is usually unrelated to traditional asset classes, such as stocks and bonds, which can reduce the overall risk of a portfolio. Second, higher commodity prices help hedge the risks of inflation and protect the real value of the portfolio. In addition, supply relationships have a greater impact on commodity prices, and investors can gain investment opportunities by keeping an eye on the supply situation.
How to Choose to Invest in a Silver ETF
Major CSI Commodity Equity Indexes include Crude Oil Product Logistics, Energy and Precious Metals. Among them, such as precious metals and energy, recent performances are different. This article focuses on investing in Silver in Precious Metals. Investing in SilverETFIt is favored by many investors because:
It achieves the purpose of risk diversification by combining multiple commodity assets and maintaining high liquidity and low thresholds in exchange-traded transactions;
Compared to investing directly in futures or derivatives, ETFs require lower management costs and transaction fees and are managed by a professional team, saving investors from dealing with complex issues such as contract showtimes and warehouse logistics;
Therefore, ETF Hold Positions Information News is published daily, which benefits investors to understand and make smart decisions. At the same time, more news is released daily, it is beneficial for investors to understand and make smart decisions. At the same time, many major products are allowed ETFSHANGPINETF to track various types of security Track Commodity Indices of various commodities, with investors being able to participate in all indices, with investors being able to participate fully in the performance of all major commodities CSICommodityEquity Index markets, not limited to the performance of a single CSI Commodity Index, and not limited to the performance of a single commodity Commodity Price Oscillating.
In simple terms, ETF is designed with multi-component features to reduce the risk of investing in CSI Commodity Equity Index Futures, Options, or Stock Stocks. With its many advantages, such as convenience, transparency, mobility and relative low cost, ETF has become an investment tool that draws on the strength of the Silver market.
How to Invest in Silver ETFs?
Before investing in a Silver ETF, you need to set up a Securities (Stocks) Account. If you store money in a bank, you need to open a bank account first.
What are the options for Silver ETFs?
In this article, we focus on the following three Highest-Volume Silver ETFs:
SLV iShares Silver ETF
$iShares Silver Trust(SLV.US)$ : IShares Silver Trust, is a silver-based ETF. Another goal is to obtain investment returns through investment bank prices. ETF invests in Silver Futures contracts and tracks the price movement of the London bank market. SLV IS A HIGHLY VOLATILE ETF THAT CAN BE BOUGHT EASILY. However, SLV's management costs are relatively high, at 0.50%.
Advantage: Silver ETF with the largest portfolio of Assets available, offering investors good liquidity.
Disadvantages: The management fee is higher (0.50%), and there may be some cost accumulation over the long term.
PSLV
$Sprott Physical Silver Trust(PSLV.US)$ : The full name Sprott Physical Silver Trust is a silver-based ETF. Unlike SLV, PSLV holds a physical bank and is not a silver futures contract. Investors buy PSLV's Stocks at the same time as gaining all rights to the physical bank. PSLV's investment portfolio consists of physical banks, which allow investors to participate directly in real trades with silver. However, PSLV charges higher due to the need to store and maintain a physical bank, and the management fee is 0.45%.
SIVR
$Abrdn Silver ETF Trust(SIVR.US)$ : Fully known as Aberdeen Standard Physical Silver Shares ETF, it is also a silver-based ETF that holds physical silver bars. SIVR's portfolio consists of physical silver bars, which gives investors direct ownership of physical silver. SIVR has a relatively low management fee of 0.30%. However, because holding physical silver bars requires storage and preservation, operating costs for SIVR may be higher.
Advantage: Lower fee rate (0.30%) compared to SLV, which saves transaction costs.
Problem:Assets are small in scale and mobility is low.
In summary, SLV, PSLV, and SIVR are silver-based ETFs, although their investment strategy and investment portfolio are not the same. SLV invests in Silver Futures contracts, PSLV and SIVR have a physical bank clause. Investors can choose the right ETF based on their investment preferences and risk.
Important Notes on Investing in Silver ETFs
For ETFs with futures contracts as underlying assets, performance may differ slightly from actual asset prices — futures contracts include costs such as storage fees, so futures contracts themselves may be higher than spot prices. Its value is not only influenced by the price of the asset itself, but also by additional factors such as the time value of futures contracts, futures exhibition costs.
If the futures contract price already includes the expected spot price increase, then even if the spot price actually goes up, ETF holders may not be able to profit from the price increase.
Silver ETFs are better than existing underlying Assets. Therefore, we do not intend to invest in Silver Futures ETFs or more stable and meaningful prices due to risks arising from other factors.
