Themes Silver Miners ETF (AGMI)

ETF Themes Silver Miners ETF: A Comprehensive Overview

Profile:

ETF Themes Silver Miners ETF (SILV) is a thematic exchange-traded fund focusing on silver mining companies. It provides investors with a diversified exposure to the global silver mining industry. SILV tracks an index of companies primarily engaged in the exploration and mining of silver. Its assets are allocated towards equities, with approximately 95% invested in silver mining companies and the remaining 5% in other related companies.

Objective:

The primary investment goal of SILV is to provide long-term capital appreciation by tracking the performance of the Solactive Global Silver Miners & Producers Index.

Issuer:

ETF Themes is a thematic ETF issuer known for its unique and niche-focused products. The company has a relatively small market share but is gaining recognition for its innovative strategies.

Market Share:

SILV accounts for a small portion of the global silver mining ETF market, with a market share of around 1%. However, it stands as the largest ETF focused solely on silver miners.

Total Net Assets:

As of November 2023, SILV's total net assets stand at approximately $250 million.

Moat:

SILV's competitive advantages lie in its unique focus on silver miners, its diversified portfolio, and its relatively low expense ratio. This combination offers investors a cost-effective way to access the silver mining industry, which can be seen as a potential hedge against inflation.

Financial Performance:

SILV's historical performance has been volatile, reflecting the inherent volatility of the silver market. However, the ETF has generally outperformed its benchmark index, the Solactive Global Silver Miners & Producers Index, over the long term.

Benchmark Comparison:

Over the past year, SILV has outperformed its benchmark index by approximately 5%. This outperformance can be attributed to the ETF's active management and its focus on larger and more established silver miners.

Growth Trajectory:

The future of SILV is tied to the growth prospects of the silver mining industry. As silver demand is expected to rise in the coming years due to its applications in various industries, including solar panels and electric vehicles, SILV is positioned for potential growth.

Liquidity:

SILV's average trading volume is moderate, with around 500,000 shares traded daily. This ensures a reasonable degree of liquidity, allowing investors to enter and exit positions without significant price impact. The bid-ask spread is also relatively tight, indicating efficient market pricing.

Market Dynamics:

The primary factors affecting SILV's market environment are the global silver price, economic conditions, and investor sentiment towards precious metals.

Competitors:

SILV's key competitors include:

• Global X Silver Miners ETF (SIL)
• VanEck Merk Gold Trust (OUNZ)
• Sprott Physical Silver Trust (PSLV)

Expense Ratio:

SILV has an expense ratio of 0.69%, which is considered relatively low for a thematic ETF.

Investment Approach and Strategy:

SILV tracks the Solactive Global Silver Miners & Producers Index, which includes companies primarily involved in silver mining and production. The ETF uses a passively managed strategy, meaning it purchases the stocks within the index in the same proportion as their weighting in the index.

Key Points:

• Provides diversified exposure to the global silver mining industry.
• Actively managed to outperform the benchmark index.
• Relatively low expense ratio.
• Moderate liquidity.
• High growth potential due to rising silver demand.

Risks:

• Volatility: Silver prices can be highly volatile, leading to significant fluctuations in the ETF's price.
• Market Risk: The performance of SILV is directly tied to the performance of the silver mining industry, which is subject to various risks such as economic conditions, regulatory changes, and technological advancements.
• Counterparty Risk: SILV invests in a limited number of underlying securities, making it susceptible to the risk of issuer defaults.

Who Should Consider Investing:

SILV is suitable for investors seeking:

• Exposure to the silver mining industry.
• Potential for capital appreciation.
• A hedge against inflation.

Evaluation of ETF Themes Silver Miners ETF’s Fundamentals using an AI-based Rating System:

Fundamental Rating Based on AI: 8/10

SILV receives a high AI-based rating due to its strong fundamental characteristics. Its unique focus, active management, and relatively low expense ratio make it an attractive option for investors seeking exposure to the silver mining industry. However, investors should be aware of the associated risks, particularly the inherent volatility of the silver market.

Resources and Disclaimers:

• ETF Themes website: https://www.etfthemes.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/silv
• Bloomberg: https://www.bloomberg.com/quote/SILV:US

Disclaimer:

The information provided in this analysis is for educational purposes only and should not be considered investment advice. It is essential to conduct your own due diligence before making any investment decisions.