Silver miner exchange-traded funds (ETFs) provide exposure to companies that produce silver, which is valued as both an industrial metal and a precious metal. These companies are engaged in the acquisition, exploration, development, and production of silver and other metals such as lead, copper, or gold. Silver is often produced as a byproduct of mining for these other metals. Though there are silver ETFs that track the price of the silver commodity, silver miner ETFs are focused specifically on stocks of companies that produce silver. Silver miner ETFs provide investors with a straightforward way to gain broad diversification across the silver mining industry.
- The price of silver outperformed the broader market over the past year.
- The ETFs with the best 1-year trailing total return are SILJ, SLVP, and SIL.
- The top holdings of these ETFs are Hecla Mining Co., Pan American Silver Corp., and Wheaton Precious Metals Corp., respectively.
There are three silver miner ETFs that trade in the U.S. The price of silver, which is a major determinant of the profitability of silver mining companies, has outperformed the broader market over the past year. Silver prices, as tracked by the Bloomberg Silver Subindex, have risen 45.4% over the past 12 months, above the S&P 500's total return of 39.7%, as of June 1, 2021. The best-performing silver miner ETF for Q3 2021, based on performance over the past year, is the ETFMG Prime Junior Silver Miners ETF (SILJ). We examine the top three best silver miner ETFs below. All numbers below are as of June 1, 2021.
- Performance over 1-Year: 44.4%
- Expense Ratio: 0.69%
- Annual Dividend Yield: 1.14%
- 3-Month Average Daily Volume: 1,596,077
- Assets Under Management: $1.1 billion
- Inception Date: Nov. 28, 2012
- Issuer: ETFMG
SILJ tracks the Prime Junior Silver Miners & Explorers Index, which gauges the performance of small-cap companies engaged in the silver mining exploration and production industry. The ETF provides exposure to small-cap silver mining companies across developed markets. It follows a blended strategy of investing in a mix of both growth and value stocks. Canada receives the largest geographical sector weighting in the fund by far, followed by the U.S. and the U.K. The fund's top three holdings include Hecla Mining Co. (HL), a silver and gold production company; Pan American Silver Corp. (PAAS:TSE), a Canada-based mining company; and First Majestic Silver Corp. (FR:TSE), a Canada-based silver mining company.
- Performance over 1-Year: 42.2%
- Expense Ratio: 0.39%
- Annual Dividend Yield: 2.27%
- 3-Month Average Daily Volume: 224,200
- Assets Under Management: $371.4 million
- Inception Date: Jan. 31, 2012
- Issuer: BlackRock Financial Management
SLVP tracks the MSCI ACWI Select Silver Miners Investable Market Index, which gauges the performance of companies across developed and emerging markets that generate most of their revenues from silver mining. The ETF is comprised of silver mining companies across the market-cap spectrum and follows a blended strategy, investing in a mix of both value and growth stocks. Although considered a global fund (as its name attests), it tilts heavily toward the Canadian silver mining industry with a majority of its holdings based in Canada. Companies based in the U.S., Mexico, Japan, and the U.K. are also represented in the fund. Its top three holdings are Pan American Silver, Hecla Mining, and SSR Mining Inc. (SSRM:TSE), a Canada-based precious metal mining company.
- Performance over 1-Year: 33.6%
- Expense Ratio: 0.65%
- Annual Dividend Yield: 1.80%
- 3-Month Average Daily Volume: 467,662
- Assets Under Management: $1.5 billion
- Inception Date: April 19, 2010
- Issuer: Mirae Asset Global Investments Co. Ltd.
SIL tracks the Solactive Global Silver Miners Total Return Index, which is designed to gauge the performance of global companies engaged in the exploration, mining, and refining of silver. The ETF provides exposure to a broad range of silver mining companies with various market capitalizations. Companies based in Canada make up the majority of the fund's holdings, followed by companies in Russia and the U.S. It follows a blended strategy, investing in both growth and value stocks. The fund's top three holdings include Wheaton Precious Metals Corp. (WPM:TSE), a Canada-based precious metals streaming company focused on gold and silver projects; Polymetal International PLC (POLY:LON), a Cyprus-based gold and silver mining company; and Pan American Silver.
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