Proving the Market’s ‘Mettle’ With This ETF

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker, financial journalist, and money manager.

At this point, market fluctuation and volatility seem to be a given, but many intrepid investors are ready to prove the market’s mettle.

Put simply, investors are looking to prove the market’s tenacity in the face of seemingly unending rate hikes and inflation. So, while investors may still have hope for the rollercoaster of a market, they may not necessarily want to throw all their eggs in one basket, so to speak.

But, when they do throw those eggs in, they want the hard-boiled ones — the sturdy ones. And, in some situations, those eggs may be of the precious metals’ variety.

Precious metals can offer unique inflationary protection, as they have an intrinsic value, carry no credit risk and cannot be inflated. Now, since there is a finite amount of them, hence the uninflatable part, they can be a rather expensive investment. That is where today’s exchange-traded fund (ETF) enters the picture.

Meet abrdn Physical Silver Shares ETF (NYSE: SIVR), a physically backed silver ETF and silver’s less expensive alternative. The fund tracks the price of physical silver bullion – which refers to silver that is 99.9% pure and often comes in the form of silver bars.

SIVR holds physically allocated silver bullion, which is stored in vaults and audited twice a year. As of March 21, the ETF held 46,947 bars with its custodian JPMorgan Chase & Co., which represents roughly 45.7 million ounces of silver.

Shares of this ETF are intended to establish a simple and cost-effective means of making an investment like that of one in silver — sans the cost and complication of investing in true physical silver.

“Physically backed silver ETFs like SIVR offer three significant advantages over other types of silver investments: transparency, liquidity and convenience,” said Sean August, chief executive officer of The August Wealth Management Group.

For all its potential advantages, SIVR has an incredibly reasonable expense ratio of 0.30%, along with net assets of $1.11 billion and assets under management of $1.17 billion.

With the virtue of tenacity being served up on today’s silver platter, it’s hard not to appreciate the chart below that displays SIVR’s year-to-date performance — which is actually up 5% from this time last year.

While the ETF has had its fair share of ups and downs, it’s not alone in that. Yet, what does set it apart, is its strong performance over the last two months, and specifically its strength this month. As of Wednesday, April 26, SIVR opened at $23.97, which is incredibly close to its high of $24.21.

Courtesy of Stockcharts.com.

So, while SIVR is not the exact equivalent of an investment into true physical silver, it provides investors with an alternative that still allows a level of participation in the silver market through the securities market.

As a true Renaissance Man may say: Mettle makes the man. And SIVR may make a wise portfolio addition.

However, interested investors always should conduct their due diligence and decide whether the fund is suitable for their investing goals.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

share on:

Like This Article?
Now Get Jim's FREE Special Report:
The Top 11 Dividend ETFs to
Buy Right Now

Get up to 5X the yields of traditional income plays.

Get Access to the Report, 100% FREE


img
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE