The Best Silver ETFs
While buying physical silver and even the silver stocks are popular, investing in a silver ETF for your portfolio is also a great selection. Silver is a great hedge against inflation, and many of the silver stocks out there today are undervalued, so you could potentially make big gains in the next few years from a Silver ETF. ETF'S themselves can more attractive than Mutual Funds because of super-low expense ratios.
Not only that, but silver itself has a lot of potential to rise over the next few years as industrial and investment demand picks up. I believe we could potentially be looking at a silver shortage sometime this decade! Even better, Silver is much less expensive than gold (current ratio - $1600 to $29) which means that even the little guy can get in.
Here are three of the most popular Silver ETFs you can buy:
ETFS Physical Silver Shares Trust Shares (AMEX:SIVR)
Credit: SeekingAlpha.comThis is an ETF backed by physical bullion. Expense ratio: .30 percent. This is 100 percent physical ETF. If you love physical itself and don't want to take on any of the risk associated with the miners, than this could be a good bet for you.
iShares Silver Trust (Quote: SLV)
Probably the most popular choice for a silver ETF out there. Expense ratio is .50 percent. This ETF is designed to track the spot price of silver bullion. Holds 100 percent bullion, so if you also just want exposure to the physical market, then this ETF could be for you. The SLV silver trust is the most liquid ETF of the silver ETFs, and probably the safest bet.
Global X Silver Miners ETF (AMEX: SIL)
Now we have introduced the miners into the equation. 31 securities are included in this ETF, and the expense ratio is .65 percent. This is my personal preferred choice for a silver ETF, because the Credit: SeekingAlpha.comminers offer leverage to an increase in the physical price. It is a great idea to own a silver ETF for less risk as well. If you own 1 equity and something goes wrong with the company, then you are screwed. With this, there are 35 holdings, so the risk is spread out. Below are the top five holding for SIL.
- Industrias Peñoles, S. A.B. de C. V. (PE&OLES): 13.39%
- Fresnillo PLC (FRES): 12.04%
- Silver Wheaton Corporation (SLW): 11.86%
- Polymetal International PLC (POLY): 9.11%
- Coeur D'Alene Mines Corporation (CDE): 5.55%
In conclusion, these are just a couple of the best silver ETFs for your portfolio out there. If you think I missed any, feel free to comment and add your favorite.