Silver’s Allure: A Study in ETFs

by

The pursuit of silver, that cool, enigmatic metal, continues to captivate. For those drawn to its luster, the modern investor finds not ingots and coin, but rather the abstracted reflection of its value within Exchange Traded Funds. Two such instruments, the iShares MSCI Global Silver ETF (SLVP +2.63%) and the iShares Silver Trust (SLV +8.98%), present distinct paths to participation, each with its own quiet drama. One, a direct engagement with the commodity itself; the other, a portfolio of those who toil to extract it from the earth. A curious arrangement, wouldn’t you say?

A Comparative Glance

Metric SLVP SLV
Issuer iShares iShares
Expense ratio 0.39% 0.50%
1-yr return (as of Jan. 25, 2026) 265.8% 231.23%
Beta 0.79 0.4
AUM $1.32 billion $48.3 billion

Beta, a measure of volatility relative to the broader market, is a curious metric. It speaks to the degree to which an investment dances to the tune of the S&P 500. The one-year return, alas, is a fleeting glimpse, a snapshot in time.

SLVP, with its lower expense ratio and recent exuberance, presents a tempting prospect. Yet, SLV, the more placid of the two, offers a degree of stability, a quiet resilience. The market, of course, rarely favors moderation.

A Study in Performance and Risk

Metric SLVP SLV
Max drawdown (5 y) -55.56% -38.79%
Growth of $1,000 over 5 years $2,945 $3,700

Created nearly two decades ago, SLV is a substantial trust, a direct wager on the price of silver itself. It holds no stocks, offers no dividends, simply reflects the metal’s fluctuations. A straightforward, if somewhat austere, proposition.

SLVP, on the other hand, is a portfolio of miners, of those who wrest silver from the earth. Established in 2012, its holdings include Hecla Mining Co. (HL +0.09%), Industrias Penoles, and Fresnillo Plc., with a notable concentration in Mexican enterprises. It is a bet not on silver itself, but on the ingenuity – and, let us be frank, the luck – of those who seek it.

The Investor’s Reflection

Silver, as any seasoned observer knows, is a volatile creature. Three times more capricious than gold, some say. Both ETFs, therefore, are subject to its whims. But SLV, being a direct reflection of the metal’s price, will feel those tremors most acutely.

And SLVP? It carries its own risks. The fortunes of mining companies are not solely tied to the price of silver. Operational challenges, geopolitical uncertainties, and the ever-present specter of dwindling reserves all play a role. Indeed, a significant portion of silver is extracted as a byproduct of other metals – a curious dependency. Should those primary metals fall out of favor, the flow of silver may diminish. A delicate balance, easily disrupted.

Both SLV and SLVP have benefited from silver’s recent ascent. But such prosperity is rarely enduring. Unless the winds of geopolitical and economic fortune continue to blow in silver’s favor, these gains may prove ephemeral. The market, after all, is a fickle mistress.

For those seeking further guidance in the realm of ETF investing, a more comprehensive exploration awaits at this link.

Read More

2026-01-26 22:01