Silver ETF   by Mike St. John

in Investment / Currency Trading    (submitted 2011-04-15)

If you have found this page you may be trying to find informaton on how to choose the right 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 similar to a stock, allowing investors to trade in and out of them (intraday) and also as frequent as they prefer. Their liquidity is what makes them attractive to traders. Yet, we should bear in mind that not every Silver ETF is the same.

The various Types of ETFs
According to your objective (long-term investor versus trader) you will discover there are a variety of exchange traded funds available. If you're a long-term investor, you're more than likely going to prefer a physically backed ETF. And, as an advanced day trader you might not be too worried if your ETF actually contains silver or not, because you can be out of your position at the end of the day. So, just remember that deciding on the appropriate vehicle is going to be determined upon what your personal objectives.

Physically-backed funds
The following funds are physically backed by silver, meaning they acutally hold physical silver inside a seperate trust. These holding companies (funds) are audited periodically to be certain the silver they state on their balance sheet is in fact there. For your reference, the name of the ETF is listed in addition to 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 350 million ounces of silver kept in storage.

ETFS Physical Silver Shares ETF - New York Stock Exchange: SIVR - This fund tries 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 can be a fund to contemplate if you are trying to gain exposure to the physical gold and silver market, but don't want to take possession.

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

Ultra ETFs
I should point out how the following 2 funds are very volatile and therefore contain higher risk. For every $1 move in the spot price, the fund moves $2. This is an extremely important consideration, particularly if you're looking at 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 is going to drop 2x as quickly when silver moves down.

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

Pro Shares Ultra Silver ETF - New York Stock Exchange: AGQ This fund seeks returns that happen to be 2x the performance from the silver spot price. Keep in mind that it'll drop 2x as rapidly when silver moves down.

Pro Shares Ultra Short ETF - New York Stock Exchange: ZSL This fund seeks to accomplish 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 searching to own physical, you don'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 buying 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 designed to track the price of the silver.

Lastly, If you're looking to invest in a silver etf for the longer term, consider the etfs that are backed by physical silver.

About the Author

If you are looking for a particular Silver ETF , or silver in general, you've come to the right place. You may also be looking for information about Investing In Gold Either way, you've come to the right place.