ASX silver shares have been one of the hottest commodities thanks to the rocketing global silver price.
Yesterday, the price of silver jumped more than 7%, pushing it to around US$111 per ounce, near record levels.
Prices are trading near US$104 per ounce, after jumping more than 50% in the past month and 260% over the past year.
As The Motley Fool's Aaron Teboneras covered yesterday, this has been driven by a rare combination of geopolitical risk, industrial demand, and speculative momentum.
The global rise in silver prices has seen many ASX silver shares benefit.
For example:
- Silver Mines Limited (ASX: SVL) is up almost 300% in the last year
- Andean Silver Ltd (ASX: ASL) is up 134%.
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New ASX ETF targeting Silver shares
For investors looking to gain diversified exposure to this booming sector without selecting just one stock could be in luck.
Yesterday, Global X announced the release of its newest ASX ETF.
It will operate under the name Global X Silver Miners ETF (ASX: SLVM).
According to the ETF provider, it provides access to a global basket of silver miners which stand to benefit from rising silver prices and being a key part of the value chain facilitating growth in photovoltaics, advanced electronics and more.
According to a report from the provider, silver has begun to re-emerge as a focal point for investors, with spot prices recently breaking above the nominal highs last seen during the Hunt Brothers–driven spike of 1980.
This renewed strength comes at a time when silver's role in the global economy has expanded materially. Beyond its traditional monetary and store-of-value characteristics, silver has become a critical input into the energy transition and a range of advanced technologies, fundamentally reshaping demand dynamics at a time when supply has struggled to respond.
Global X currently provides pure-play physical silver exposures through Global X Physical Silver Structured (ASX: ETPMAG).
The launch of this new silver miners ETF offers investors an alternative avenue for accessing the theme, capturing the operating leverage inherent in mining equities.
Overview
The ASX ETF is made up of 39 holdings, with a unique focus on silver miners, rather than a physical pure-play option.
By market capitalisation, it has a variety:
- 72.3% large-cap
- 22% mid-cap
- 5.7% small-cap
Geographically, it has largest exposure to companies based in:
- Canada (58.93%)
- United States (18.40%)
- Mexico (9.98%)
- South Korea (4.36%)
- Peru (4.10%)
This thematic fund comes with a management fee of 0.65% p.a. and is not currency-hedged.
