Specialist wealth manager Global X has expanded its suite of commodity-based exchange-traded funds (ETF) with the release of a new offering focused on companies involved in the exploration, mining and production of silver.
The Global X Silver Miners ETF, trading under the Australian Securities Exchange code SLVM, was launched today and will provide investors with access to a global portfolio of companies involved in the search, extraction or refining of silver, using the Solactive Global Silver Miners Net Total Return Index as its benchmark.
The management fee charged on the new offering will be 0.65 per cent a year.
The investment firm explained the new fund was established as a result of the increased industrial use of silver, including in photovoltaic panels for electricity generation, grid expansion and semiconductor manufacturing, which underpins a more structural, long-term investment case.
“Silver miners may offer greater upside participation through operating leverage, with smaller producers and explorers particularly well positioned as higher price levels improve project viability,” Global X stated on its website.
“Silver’s chronic supply deficit since 2021 highlights the challenges of scaling production and could provide further upside as demand continues to outstrip supply,” it added.
Global X currently offers physical silver exposure through its Global X Physical Silver Structured ETF and the new product adds to its 11 existing commodity ETFs, including those focused on materials including uranium, palladium, platinum, gold and copper.
The uranium ETF was launched in 2022.
“For investors seeking exposure to the structural opportunities in silver or looking to capitalise on the operating leverage of mining companies for tactical positioning in the silver price, SLVM may be worth considering,” Global X indicated.
“The fund offers a diversified ‘picks and shovels’ approach to silver exposure that would otherwise be largely inaccessible in the Australian share market,” the fund manager concluded.
