The silver market has been on a remarkable journey over the past year, outperforming the broader stock market indices. As of June 1, 2021, the Bloomberg Silver Subindex showed a staggering 45.4% increase in silver prices over the previous 12 months, surpassing the S&P 500's total return of 39.7%. This bullish trend in silver has piqued the interest of many investors looking to capitalize on the precious metal's momentum. If you're considering entering the silver market, exchange-traded funds (ETFs) focused on silver miners might be an attractive option. In this article, we will explore three silver miner ETFs to watch for in Q3 2021.
1. ETFMG Prime Junior Silver Miners ETF (SILJ)
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 is a standout choice among silver miner ETFs, with an impressive 44.4% one-year trailing total return. This ETF tracks the Prime Junior Silver Miners & Explorers Index, offering exposure to small-cap companies involved in silver mining exploration and production. Diversification is a key strength, as it invests across developed markets. Canada dominates its geographical sector weighting, followed by the U.S. and the U.K.
SILJ's top three holdings comprise Hecla Mining Co. (HL), a prominent silver and gold production company; Pan American Silver Corp. (PAAS:TSE), a well-established Canadian mining firm; and First Majestic Silver Corp. (FR:TSE), another Canadian silver mining company. These holdings offer investors direct exposure to the silver mining industry's leaders.
2. iShares MSCI Global Silver Miners ETF (SLVP)
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 measures the performance of companies primarily deriving their revenues from silver mining. This ETF offers diversification across developed and emerging markets, with a focus on silver mining.
Despite its global label, SLVP leans heavily toward the Canadian silver mining industry. Holdings also include U.S., Mexican, Japanese, and British companies. Pan American Silver, Hecla Mining, and SSR Mining Inc. (SSRM:TSE) are among its top holdings, providing investors with broad exposure to silver miners across different geographies.
3. Global X Silver Miners ETF (SIL)
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, designed to gauge the performance of global companies engaged in silver exploration, mining, and refining. This ETF provides exposure to a diverse range of silver mining firms with various market capitalizations. Canadian companies make up the majority of the fund's holdings, with Russian and U.S. firms also represented.
Wheaton Precious Metals Corp. (WPM:TSE), Polymetal International PLC (POLY:LON), and Pan American Silver are the top three holdings in SIL. Wheaton Precious Metals focuses on gold and silver projects, offering investors a unique stream of precious metals revenue.
Summary
The silver market's remarkable performance over the past year has captured the attention of investors seeking opportunities for growth. Silver miner ETFs like SILJ, SLVP, and SIL provide a diversified approach to gain exposure to the silver mining industry. Before investing, it's crucial to conduct thorough research, assess your risk tolerance, and consider your investment goals. Keep in mind that past performance is not indicative of future results, and market conditions can change rapidly. Be sure to consult with a financial advisor to make informed investment decisions in Q3 2021.
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