Q: What are the pros and cons of this ETF as a silver play? It seems to be lagging both physical silver and silver miners. If that assessment is correct is there a reason for that? It obviously offers expertise in the space; does that translate into more downside protection?
Thank you, Hugh
Thank you, Hugh
5i Research Answer:
The $900M ETF follows a specific index so is passive. It is up 248% in the past year. This beats the gain in silver. Some stocks have moved more but a diversified ETF is always going to underperform the big winners simply due to its nature. SLVR owns 72 separate positions. We would consider it a good ETF for the sector. Under its structure there is not additional downside protection. AG is a 24% position. PSLV is 19%.