Global X Silver Miners ETF: Top 5 Holdings

Global X Silver Miners ETF: Top 5 Holdings

The Global X Silver Miners ETF (ARCA:SIL) aims to provide investors with exposure to a broad range of silver mining companies. Each producer included in the ETF has the potential to significantly benefit from a rising silver price environment, as operating costs are usually fixed and often fairly low.

Furthermore, a gap between global demand and supply for silver, which has increased over the past few years and stood at 261.5 million ounces in 2013, combined with strong growth in the industry in emerging markets, makes silver mining companies an attractive option for many investors.

The ETF helps investors reduce single-company risk, as well as location-specific risk, by gathering together a variety companies in a range of locations. According to the ETF's website, investing this way rather than in individual companies could also provide more income through dividends.

Here's a look at the top five holdings of the Global X Silver Miners ETF as of September 11.

Silver Wheaton (TSX:SLW,NYSE:SLW)

Silver Wheaton is the largest precious metals streaming company in the world. Being a streaming company means it has the right to purchase silver from high-quality mines around the world through a number of agreements. These purchases are made at low, fixed costs. The company has such agreements for 19 operating mines and several development-stage projects. Silver Wheaton has agreements with miners in Mexico, Sweden, Peru, Canada, Brazil, Chile, Argentina and more countries across the globe. Many of its agreements are for the entire life of the mine.

Silver Wheaton comprises 13.06 percent of the Global X Silver Miners ETF's total net assets, at a total market price of more than $30 million.