Silver ETF vs. Silver Miners ETF: Which Has Held Up Better This Year?
The Global X Silver Miners ETF is thumping the iShares Silver Trust, and that condition could persist even if the commodity's price rebounds.
This year, gold prices have been falling, as higher interest rates have increased the appeal of bond yields. Silver, on the other hand, has been underperforming, with its exchange-traded funds (ETFs) experiencing significant losses. The iShares Silver Trust (SLV) is down 27%, while the Global X Silver Miners ETF (SIL) has only lost 7.3% year-to-date.
Despite being physically backed, SIL has outperformed its spot counterpart, SLV. This performance may be due to the fact that miners are not as reliant on silver prices to generate earnings, and they are experiencing declining leverage. Additionally, silver supply is limited, which could lead to a rally in dedicated silver miners if silver prices rise.
Investors should also consider that silver is an economically sensitive commodity, and recent weakness in its prices may indicate a cooling broader economy. If a silver rebound occurs in 2027, both ETFs could potentially benefit.
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