This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Silver Miner ETFs Top Performers In Q3

Investors who buy mining stocks often do so as a leveraged bet on silver prices. It is little wonder then that central banks were a key driver of silver miner ETFs' strong performance in the third quarter. Though current market conditions may have obscured the memory a bit, at the beginning of the last quarter silver was in the red and investors were on the sidelines. In August, there was a notable shift in sentiment and investors returned to play.

Anticipation that the European Central Bank and the Federal Reserve would intervene in the markets and the generous programs that confirmed these expectations not only turned the tide among physical investors, but also among silver miner ETF investors. The rewards were more attractive for the latter. According to ETF Trends, SIL was a top performer among all types of ETFs in September.

SIL is a much larger fund than SLVP, which has a market cap of only about $2.38 million. The larger ETF has been around since 2010, but SLVP was introduced to the market earlier this year. While investors are clearly showing a preference for SIL, eight of the top 10 holdings in both ETFs include the same companies, but represent different percentages.

Both funds also provide exposure to the full gamut of silver companies. That may initially be a turn off for some investors since junior miners have a reputation for extreme volatility that many find unappealing. Some market veterans even warn that the junior mining sector is unsuitable for most silver investors.

But there are two things that increase the appeal of silver miner ETFs for those who want to invest in silver companies. First, advisers admit that when good selections are made, junior miners can offer highly attractive returns. Second, the way these funds weigh juniors compared to how they weigh larger companies significantly reduces risks while still providing diversity.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs