abrdn Physical Silver Shares ETF (SIVR)

US ETF Overview: abrdn Physical Silver Shares ETF (SIVR)

Profile:

SIVR is an exchange-traded fund that aims to track the price of silver bullion. It invests directly in physical silver bullion held in a London vault. SIVR is passive and seeks to achieve its investment objective by investing in physical silver. It does not hold any other assets or derivatives.

Objective:

The primary objective of SIVR is to provide investors with a convenient and cost-effective way to invest in physical silver. The fund does not seek to generate income from dividends or interest payments.

Issuer:

abrdn (formerly Standard Life Investments) issues SIVR.

• Reputation and Reliability: abrdn is a global investment management firm with over $574 billion in assets under management. They have a long history and a solid reputation in the industry.
• Management: The ETF is overseen by a team of experienced portfolio managers who have expertise in precious metals.

Market Share:

SIVR is the second-largest physically-backed silver ETF in the world, with approximately 10% of the market share. The largest is iShares Silver Trust (SLV) with a market share of 40%.

Total Net Assets:

SIVR has approximately $2.4 billion in total net assets.

Moat:

SIVR's competitive advantages include:

• Physical silver holdings: Unlike other silver ETFs that may invest in silver futures contracts, SIVR offers investors direct exposure to the underlying physical metal. This may be appealing to those who are concerned about the risks associated with futures contracts.
• Low expense ratio: The expense ratio of SIVR is 0.5%, making it one of the most cost-effective silver ETFs available.
• Liquidity: The ETF is highly liquid, with an average trading volume of over 1 million shares per day.

Financial Performance:

SIVR has historically tracked the price of silver closely. Over the past five years, the ETF has returned a total of 23.3%, compared to a return of 24.3% for the spot price of silver.

Benchmark Comparison:

SIVR has outperformed its benchmark, the Bloomberg Silver Subindex, over the past five years. The ETF has returned 23.3%, while the benchmark has returned 20.2%.

Growth Trajectory:

The demand for silver is expected to grow in the coming years, driven by factors such as its use in industrial applications and its increasing popularity as an investment asset. This could lead to an increase in the price of silver and, consequently, the value of SIVR.

Liquidity:

• Average Trading Volume: SIVR has an average daily trading volume of over 1 million shares.
• Bid-Ask Spread: The bid-ask spread for SIVR is typically less than 0.1%.

Market Dynamics:

The price of silver is affected by various factors, including:

• Global economic growth: A strong global economy typically leads to an increase in demand for silver, which can drive the price higher.
• Industrial demand: Silver is used in various industrial applications, including electronics, solar panels, and jewelry. An increase in industrial activity can lead to an increase in the demand for silver.
• Investor sentiment: Silver is also seen as a safe-haven asset, and its price can rise during periods of economic uncertainty.

Competitors:

The main competitor of SIVR is iShares Silver Trust (SLV). SLV is the largest physically-backed silver ETF in the world and has a market share of 40%. Other competitors include:

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

Expense Ratio:

SIVR has an expense ratio of 0.5%.

Investment Approach and Strategy:

• Strategy: The ETF passively tracks the price of silver by investing directly in physical silver bullion.
• Composition: SIVR holds only physical silver bullion.

Key Points:

• Direct exposure to physical silver: SIVR offers investors direct exposure to the price of silver bullion.
• Cost-effective: SIVR has a low expense ratio of 0.5%.
• Highly liquid: SIVR has an average daily trading volume of over 1 million shares.

Risks:

• Volatility: The price of silver can be volatile, and the value of the ETF can fluctuate significantly.
• Market risk: The value of SIVR is directly linked to the price of silver.
• Counterparty Risk: SIVR relies on the custodian of the physical silver to safeguard the assets.

Who Should Consider Investing:

SIVR is suitable for investors who:

• Want exposure to the price of silver.
• Are looking for a cost-effective way to invest in silver.
• Are comfortable with the volatility of silver prices.

Fundamental Rating Based on AI:

8/10

SIVR is a well-managed and cost-effective ETF with a strong track record of performance. The ETF is a good option for investors who want to gain exposure to the silver market.

Resources:

• abrdn Physical Silver Shares ETF (SIVR): https://us.abrdn.com/advisers/us-etfs/product/us-etfs-detail.html/us/en/individual/productdetail.detail.investmenttype.etf.srv?isin=US03714G1136
• Silver Price: https://goldprice.org/silver-price.html
• Bloomberg Silver Subindex Total Return (TR): https://data.bloomberglp.com/professional/sites/24/BCOMSTSLV%3ATotal%20Return/

Disclaimer:

The information provided in this summary is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before investing in any ETF or other investment product.