Silver ETF

If you’ve landed on this page you’re probably looking for informaton on how to invest in a Silver ETF. Silver exchange traded funds (ETFs as we’ll refer to them) are funds that trade on the major stock exchanges like the New York Stock Exchange. They trade just like a stock, allowing investors to trade in and out of them (intraday) and as frequent as they prefer. Their liquidity is what makes them attractive to traders. Yet, we must remember that not all Silver ETF are the same.

The Different Types of ETFs
Depending on your objective (long term investor versus trader) there are different types of exchange traded funds available. If you’re a long term investor, you’re most likely going to prefer a physically backed ETF. And, if you’re a day trader you may not be too worried if the ETF actually contains silver or not, because you’ll be out of your position at the end of the day. So, just remember that choosing the appropriate vehicle is going to be determined upon what your individual objectives are.

Physically-backed funds
The following funds are phyisically backed by silver, meaning they acutally hold physical silver in a seperate trust. These holding companies (funds) are audited periodically to make sure the silver they state on their balance sheet is actually there. For your reference, the name of the ETF is listed along with it’s trading symbol and associated exchange.

Phyisically Backed ETFs

iShares Silver Trust – New York Stock Exchange: SLV  Although this fund is relatively new (2006), the iShares silver trust is the largest Silver ETF with over 350 million ounces of silver in storage.

ETFS Physical Silver Shares ETF – New York Stock Exchange: SIVR This fund attempts to emulate the silver spot price.

Central Fund of Canada – Toronto Exchange: CEF.NV.A  New York Exchange: CEF – Note: Central Fund of Canada contains gold and silver (approximately 50% of each) This is a fund to consider if you’re looking to gain exposure to the physical gold and silver market, but don’t want to take posession.

EFTS Physical Silver – London Stock Exchange: PHAG This ETF is relatively new (2007) also attempts to track the spot price of silver.

Ultra ETFs
I should point out that the following 2 funds are very volatile and thus contain much higher risk. For every $1 move in the spot price the fund moves $2. This is a very important consideration, especially if you are considering using margin.

Pro Shares Ultra Silver ETF – New York Stock Exchange: AGQ This fund seeks returns that are 2x the performance of the silver spot price. Remember that it will drop 2x as fast when silver moves down.

Pro Shares Ultra Short ETF – New York Stock Exchange: ZSL This fund seeks to perform 2x the inverse or opposite of the spot price of silver.

Non – Physical Backed ETFs
The following funds invest in silver futures contracts, not physical bullion. So, if you’re looking to own physical, you wouldn’t want to own the following funds.

UBS E-TRACS CMCI Silver Total Return - New York Stock Exchange: USV   The fund measures the returns from a basket of silver futures contracts. This is definitely one of the more riskier funds in that you’re investing in contracts versus a fund backed by physical silver.

Power Shares DB Silver Fund - New York Stock Exchange: DBS This fund contains silver futures contracts and is supposed to track the price of the silver.

A Final Note: If you’re looking to invest in a silver etf for the longer term, consider the etfs that are backed by physical silver.