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Silver ETF's are a new investment vehicle that allow investors to invest in silver without holding the metal or taking positions in the derivatives markets such as futures or options. In the past, investors have gained exposure to silver by investing in silver stocks. Exchange traded funds comprise a replication of an index, a group of sector or region constituent stocks or the physical holding of an asset. Silver ETF's are traded on an exchange in much the same way as stocks and can be bought, sold, used as a hedge or purchased on margin. Unlike mutual funds, silver exchange traded funds do not require the payment of an access or redemption fee. Silver ETF's are cheaper to manage because they do not require excessive management fees to facilitate the running of the fund. For the most part, transactions for the fund are conducted periodically which reduces day to day costs. The iShares Silver
Trust (SLV) PowerShares DB
Silver (DBS) The Central Fund of
Canada (CEF) with trades on the
Canadian exchange is mandated to keep its core holdings in a mixture of
gold and silver. The fund has an appointed custodian that keeps the
reserves of gold and silver in inventory. TFS Silver (SLVR) ETFS Physical
Silver (PHAG) Silver ETF's are a
useful addition to any traders and
investors trading arsenal. With the ability to go long, short or use as
part of sophisticated pair or hedging strategy, silver mining ETF's
provide versatility without encountering the same level of risk
associated with futures and options positions. Traders that want to
know more about Silver ETF's can do further research through the
numerous financial portal sites that grace the internet such as Yahoo,
Market Watch or the Wall Street Journal. You can also find up to date
articles and news on new silver based ETF products. Next Article: India iShare ETF |
