Global X Launches Silver, Copper Miner ETFs
Source: Seeking Alpha, Michael Johnston (4/21/10)
"COPX and SIL are latest additions to this fast-growing corner of the ETF industry. . ."
COPX and SIL are the latest additions to this fast-growing corner of the ETF industry, offering exposure to two unique metals. SIL seeks to replicate the performance of the Solactive Silver Miners Index, a benchmark comprised of companies that are actively engaged in some aspect of the silver mining industry, such as mining, refining or exploration. The index currently consists of about 25 companies, with Canada, Mexico and the U.S. receiving the largest country allocations.
Silver is one of the world’s most unique commodities, exhibiting characteristics of both a precious and industrial metal. As an investment asset like gold, silver is seen by many as a safe haven during uncertain economic times. But unlike gold, silver is widely used in industrial applications, found in everything from dental fillings and photography to medicine and clothing. As such, demand is also tied to the overall health of the global economy, and silver usage could see a surge if industrial activity continues to accelerate.
A handful of ETFs currently offer exposure to silver through both physically backed and futures-based strategies, but SIL is the first to primarily target stocks of silver miners.
From an expense perspective, COPX has a slight edge, charging 0.65% compared to 0.70% for CU. SIL will also charge an expense ratio of 0.65%.