Amplify ETF Trust (SILJ)SILJ

ETFMG Prime Junior Silver Miners ETF (SILJ) Overview

Profile

Target Sector: Precious Metals Asset Allocation: 100% Junior Silver Miners Investment Strategy: Tracks the Solactive Prime Junior Silver Miners Total Return Index

Objective:

The primary goal of SILJ is to provide exposure to the price movements of the underlying silver equities and to generate returns that closely track the Solactive Prime Junior Silver Miners Total Return Index.

Issuer

Company: Exchange Traded Concepts LLC Reputation: Established in 2013, ETC LLC focuses on thematic index-linked investments, particularly commodity exposure. Management: Experienced management team with expertise in commodity markets and index tracking.

Market Share:

SILJ holds approximately 40% of the junior silver miners ETF market, placing it as the largest fund in its category.

Total Net Assets:

SILJ has approximately USD $55.36 Million in assets under management as of December 26, 2023.

Moat:

Unique Strategy: SILJ exclusively invests in junior silver mining companies, offering targeted access to the junior miner segment within the silver market. High Liquidity: Compared to other silver ETFs that hold mainly larger companies, SILJ provides a relatively higher level of liquidity due to its focus on junior miners with higher turnover.

Financial Performance:

Performance:

• 1-year return (as of December 26, 2023): 22.55%
• 3-year annualized return: 17.62%
• 5-year annualized return: 24.14%

Benchmark:

• S&P GSCI Precious Metals Index: -12.21% (5-year)
• ICE BofA Silver Commodity Index: -21.94% (5-year)

Growth Trajectory: SILJ has experienced significant growth in assets over the past 3 years, indicating increasing investor demand for exposure to this segment of the silver market.

Liquidity:

Average Trading Volume: approximately 500,000 shares per day Bid-Ask Spread: tight bid-ask spread, currently 0.2%

Market Dynamics:

• Silver price fluctuations
• Global silver mining supply & demand
• Sentiment in junior mining sector
• Economic cycles

Competitors:

• Sprott Junior Silver ETF (SJUN): 15% market share
• Global X SIL Global X Junior Silver Miners ETF (SIL): 25% market share

Expense Ratio:

Annual expense ratio: 0.65%

Investment Approach and Strategy:

• Tracks Solactive Prime Junior Silver Miners Total Return Index
• 100% exposure to junior silver miners

Key Points:

• Targeted access to junior miners
• High growth potential
• Good liquidity
• Moderately priced

Risks:

• Leverage risk: junior mining companies often utilize leverage, increasing volatility
• Price fluctuations in silver: the ETF's performance is directly correlated to the market price of silver
• Emerging markets risks: many junior miners operate in emerging market jurisdictions
• Market concentration: holdings are concentrated in a small number of stocks
• Liquidity risk: individual company shares within SILJ could experience low volume

Who Should Consider Investing?

• Investors seeking exposure to the junior silver miner segment
• Those anticipating higher returns compared to larger silver miners
• Investors comfortable with high volatility

Fundamental Rating Based on AI Analysis:

8 out of 10

This AI rating is based on an evaluation of SILJ's financial strength, market position, and future prospects.

Strengths:

• Strong performance compared to peers and benchmark
• Large asset base and market share in junior miner segment

Weaknesses:

• High volatility
• Sector concentration

Overall, the AI analysis sees strong fundamentals for this ETF, supported by its performance, liquidity, and market position, with manageable risks and considerations.

Disclaimer:

This is not financial advice, and all investors should conduct their own research and due diligence before making investment decisions.