Futu Research | ETF Investment Research
【Silver ETF】US Stock Silver Investment Logic Analysis
In the near term, the trend of growth in commodities represented by Metals is similarly strong. Related white silver ETFs are high in the relevant location.
What Is the Significance of Commodity Values?
Commodity commodities act as a different type of investment, and can have their own uses in multi-dollar investments.
Prime Minister, the volatility of commodity prices is not strongly correlated with the traditional Assets categories of Stocks and Bonds, which can reduce the aggregate risk of the investment portfolio. Other times, higher commodity prices help protect the real value of the investment portfolio by increasing the risks associated with the export trade. Beyond this, the greater the correlation of supply and demand to commodity prices, investors can gain investment opportunities by relying on supply and demand conditions.
Why Choose to Invest in Silver ETF
Major commodities include Crude Oil Products Logistics, Energy and Precious Metals. Among them, such as precious metals and energy, recent performances are different. This article focuses on investing in precious metals. Investment White SilverETFIt is favored by many investors because:
Other Assets can be achieved by combining a variety of Commodity Asset Assets, and maintaining high liquidity and low volatility in the Exchange-traded trade;
Compared to Direct Investment Futures or Commodity, ETF requires lower management costs and trade fees, and handles various issues such as contract exhibition periods and warehouse logistics by managing professional teams and managing investors;
Therefore, ETF Hold Positions Information News is published daily, which benefits investors to understand and make smart decisions. At the same time, it is possible for investors to understand and make smart decisions, while allowing many major productsETFSHANGPINETF to closely track various types of security Tracking Commodity Indices of various commodities, Investors can relate to all Commodity Indices, and investors can relate to the performance of all major commodity Commodity markets, not limited to the performance of a single Commodity Commodity Market, and not limited to the performance of a single Commodity Commodity Price Wave.
In simple terms, ETF is equipped with multi-component features to reduce the risk of investing heavily in Commodity Futures, Futures, Options, or Stock Stocks. WITH MANY ADVANTAGES SUCH AS ACCESSIBILITY, TRANSPARENCY, MOBILITY AND ASSOCIATED LOW COST, ETF HAS EMERGED AS AN INVESTMENT TOOL FUELED BY THE WHITE BANK MARKET.
How to Invest in Silver ETF?
Before investing in a White Bank 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 a silver ETF?
In this article, we focus on the following three highest-volume white 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: White money ETF with the largest portfolio of Assets available, providing investors with 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: Low cost ratio (0.30%) compared to SLV, can save Trade 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 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.
What to look out for when investing in silver ETFs
For ETFs that are backed by futures contracts, there may be a difference in the actual asset price from the actual assets—the price of the futures contract includes the cost of storage, so the price of the futures contract may be higher than the matching price. Other values are not only reflected in the definition of Asset prices, but also the time value of Futures contracts, and the futures exhibition period are the same factors.
If the Futures contract price already includes an increase in the expected spot price, then using the actual increase in the current price, the ETF holder may not be able to profit from the price increase.
White money ETFs are better than current Treasury-backed Assets. THEREFORE, WE DO NOT INTEND TO UNDERTAKE RISKS ARISING FROM OTHER FACTORS TO INVEST IN WHITE BANK FUTURES ETFS OR MORE STABLE AND MEANINGFUL RATIOS.
