Silver prices (CM:XAGUSD) have gained 24.2% so far in 2024. However, the uncertainty related to the U.S. Federal Reserve’s interest rate cuts could continue to impact the physical metal’s direction. Investors who are keen to gain some exposure to silver prices but shy away from the hassle of holding the physical metal can do so by investing in silver ETFs, a comparatively cheaper way to invest in silver. We used TipRanks’ ETFs Comparison tool for Spot Silver ETFs to compare iShares Silver Trust (SLV), Aberdeen Physical Silver Shares ETF (SIVR), and ProShares Ultra Silver (AGQ) and determine the most attractive one.
Interestingly, speculative investors wish to benefit from the spot price movement of the silver commodity. At the same time, some investors see great value in the precious metal, as silver has many applications in the commercial and industrial space and acts as a hedge against inflation.
It is important to note that since all spot Silver ETFs track the same single physical metal, Silver, their returns are similar, as seen in the chart below. The minute variances in the returns of the Silver ETFs are due to differences in their management expenses.
TipRanks’ ETF Comparison Tool enables the comparison of ETFs based on several parameters, including AUM (assets under management), funds flow, expense ratio, technicals, and performance over different time periods.
iShares Silver Trust (SLV)
The iShares Silver Trust seeks to replicate the performance of silver bullion’s day-to-day spot prices. Established in April 2006, SLV tracks the LBMA Silver Price Index. Notably, SLV has an expense ratio of 0.50%.
As of June 17, SLV held 429,775,050.90 ounces of silver, while its assets under management (AUM) stood at $12.56 billion. In the past three months, SLV witnessed massive fund flows of roughly $364 million, one of the highest among the three ETFs.
Aberdeen Physical Silver Shares ETF (SIVR)
Aberdeen Physical Silver Shares ETF also seeks to reflect the price performance of the silver bullion, less the management expenses. SIVR was launched in July 2009 and tracks the LBMA Silver Price Index. Interestingly, at 0.30%, SIVR has the lowest expense ratio out of the three ETFs.
As of June 17, SIVR had $1.33 billion in AUM and held 47,827.10 ounces of silver. The net fund flows to SIVR in the past three months amount to approximately $26 million.
ProShares Ultra Silver (AGQ)
The ProShares Ultra Silver ETF is slightly different from the two ETFs discussed above. The AGQ is a leveraged ETF, which means that it aims to amplify the daily returns of the benchmark index. In the case of AGQ, the objective is to provide 2x (twice) the daily return of the Bloomberg Silver Subindex. As we can see in the comparative chart above, AGQ’s year-to-date return of 41% is higher (nearly double) than that of the other two ETFs.
It is important to note that leveraged ETFs carry higher risks than conventional ETFs, as the double exposure implies that the losses could also be magnified (2x). In a leveraged ETF, the amplified returns are generated by holding derivative instruments.
At 0.95%, AGQ has the highest expense ratio of the three ETFs. This is because the fund manager tries to magnify the returns of the underlying index on a daily basis.
AGQ ETF was launched in December 2008. As of June 17, it had AUM of $557.28 million. In the past three months, AGQ saw net inflows of approximately $13 million.
Ending Thoughts
Based on the AUM and fund flows in the last three months, the iShares Silver Trust ETF seems to be the most attractive pick. With one of the largest AUM in the silver ETFs space and growing assets under management, SLV seems to be a well-positioned Spot Silver ETF.
