Despite Metal Weakness, The Silver ETF Has Still Seen Substantial Inflows
Yesterday we covered the recent outflows that the largest gold-based ETF GLD (SPDR Gold, Expense Ratio 0.40%) has experienced, while gold prices are at their lowest point since January/February of this year.
In the spirit of Christmas, and reminded by Burl Ives’ singing performance from the holiday classic “Rudolph The Red Nosed Reindeer” today we not only talk about “Gold,” but “Silver And Gold.” The largest Silver based ETF in the marketplace, SLV (iShares Silver, Expense Ratio 0.50%, $5.3 billion in assets under management) has managed to put together a prosperous run in terms of gathering assets in 2016 in spite of huge volatility in the price of the underlying metal and in Precious Metals in general, packing in more than $450 million in new assets year-to-date via creation flows.
When we look at the chart in SLV, we see a steep price decline right after Trump’s Presidential election, which is the case for a number of Precious Metals amid the momentous rise of the U.S. Dollar.
SIVR (ETFS Physical Silver Shares, Expense Ratio 0.30%) is the second largest “Silver” tracker in the space at $301 million in AUM, but as one can see it is only a small fraction of the size of the tenured SLV which debuted back in 2006.
The sudden sell-off in Silver and other Precious Metals has penalized those whom may have been long “Levered Bull” products in the space such as AGQ (ProShares Ultra Silver, Expense Ratio 0.95%, $256 million in AUM, -$8.7 million in outflows YTD) and USLV (VelocityShares 3X Long Silver ETN, Expense Ratio 1.65%, $188 million in AUM, $93 million in inflow YTD), but in the case of USLV, we can see significant inflows into the fund year-to-date which make up a large portion of the fund’s overall AUM.
On the other hand, “Levered Bear” products here such as ZSL (ProShares UltraShort Silver, Expense Ratio 0.95%, $26.3 million in AUM) and DSLV (VelocityShares 3X Long Silver ETN, Expense Ratio 1.65%, $10.7 million in AUM) remain rather small in terms of AUM size, especially relative to the Bull products, but they are trading at their highest levels since early summer and may attract more attention here in the near term if the Silver weakness persists.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.
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