Silver ETFs: Shining Through the Market Noise

In 2025, we have had to go back to the basics including diversification. One of the most well-known ways to diversify has been with commodities. Commodities have low correlation to other asset classes, including equities and fixed income. While gold has been the commodity favorite for many investors, silver has started to receive more attention recently as signals point to possible undervaluation. Investors can access silver through physical silver ETFs or silver mining equity ETFs.While gold often outshines silver, silver has some unique benefitsLike gold, silver is a precious metal that serves as a “store of value.” Its supply is somewhat limited, which makes it valuable. But compared to gold, there is a significant difference. As of May 12, gold costs around $3,200 per troy ounce, while silver costs around $30. But unlike gold, silver comes with more industrial uses. Silver has high conductivity, which makes it suitable for use in vehicles, machinery, and electronics. This makes it as much of an investment opportunity as it does a method of savings. It also adds an extra layer of risk. For example, if industrial demand goes down due to tariffs or other economic/geopolitical conditions, that could affect demand for silver. While silver often moves alongside gold, a well-followed ratio is the gold-to-silver ratio. That is the cost of gold per ounce/cost of silver per ounce. This ratio has recently climbed and is currently hovering at around 100. A higher ratio (at least higher than 80) indicates silver may be undervalued relative to gold.Investors often choose physical silver ETFs as a portfolio diversifierThere are only two ETFs that solely hold physical silver. The oldest and largest fund is the iShares Silver Trust (SLV B-), which has $14.7 billion in assets. For reference, the largest gold ETF, the SPDR Gold Shares (GLD A-), has $100.2 billion in assets. So there is a significant gap in size between the two. The abrdn Physical Silver Shares ETF (SIVR B+) is much smaller, at $1.6 billion. But it comes with a lower fee (30 basis points compared to SLV’s 50 basis points). Some investors may also choose short-term exposure to silver through leveraged silver ETFs. Investors can target 2x daily exposure to silver through the ProShares Ultra Silver (AGQ A-) and 2x daily exposure through the ProShares UltraShort Silver (ZSL A). Both funds use derivatives (e.g., futures contracts and swaps) to replicate performance. For a deeper look at the leveraged ETF universe, see this note.While less popular than pure silver exposure, silver miners may offer additional returnsOutside of investing in physical silver ETFs, investors can also access silver through ETFs of silver mining equities. These add an extra layer of equity risk, but may offer higher returns when the underlying commodity (silver) performs well. Currently, silver mining ETFs are up around 25% YTD, while physical silver ETFs are up around 12%. The largest ETF in the space is the Global X Silver Miners ETF (SIL B-), which was launched in 2010. It currently has $1.6 billion in assets. This ETF looks at global silver miners and is weighted by market capitalization. Like many market-cap-weighted ETFs, this ETF is top-heavy, with the first two holdings totaling to 35% of its weight. Its top holding is Wheaton Precious Metals Corp (WPM CN), which has been up 37% YTD. The Amplify Junior Silver Miners ETF (SILJ C+) is the first and only ETF that looks at “junior miners.” which are small-cap silver miners. It does, however, have significant crossover with its peers. It uses a “theme-adjusted” market-cap weighting system. That includes market cap, silver revenue percentage, and liquidity. As a result, stock weights are relatively diversified. Top holdings include Coeur Mining (CDE) and First Majestic Silver Corp (AG). Compared to its peers, the junior silver mining space is only slightly underperforming this year (22% vs. 25%). The iShares MSCI Global Silver and Metal Miners ETF (SLVP B+) combines silver miners with other metal miners. While this explicitly states that in the name, all of its peers more or less also contain other miners.  (And most miners derive revenue from several different metals so lines are often blurred.) Its top three holdings are 41% of the ETF’s weight, including 20% in its top holding, Pan American Silver (PAAS CN). The Sprott Silver Miners & Physical Silver ETF (SLVR) was launched in January by Sprott. This issuer a well-known manager in the metals and materials space. SLVR has a large allocation to physical silver through a Sprott trust (approximately 17%). It is the only ETF of the group to combine miners with physical silver. Along with SLVP, this has the most exposure to silver miners over other metal miners (classified by GICS). SLVR also has the least overlap with its peers in terms of its top 10 holdings. The Sprott Active Gold & Silver Miners ETF (GBUG ) launched in February. This is the only active ETF of the group. It combines both gold and silver miners with the thesis that miners may be undervalued versus bullion and that an active strategy has the flexibility to take advantage of those lower valuations. Currently, GBUG has mostly gold miners and is among the most diversified when it comes to individual holdings. Its top holding is only around 5% of the ETF’s weight. This strategy may be more popular for investors who want a more diversified approach to metals miners instead of focusing separately on silver miners. As mentioned earlier, it’s often hard to target silver miners over gold miners. That’s because many mining companies have diversified revenue streams. The Themes Silver Miners ETF (AGMI ) was launched last year. Like many of Themes’ products, AGMI has an expense ratio on the lower end of its peers. This ETF is also among the most diversified globally (although still leaning heavily toward Canada). For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Channel.