Why SIVR Outshines SLV for Long-Term Silver Investors
Silver has surged nearly 140% over the past year, fueled by a powerful trifecta of industrial demand, investor appetite, and supply constraints. The metal is now a critical component in solar panels, electric vehicles, consumer electronics, and data centers—especially those powering the AI boom. At the same time, rising interest rates, geopolitical tensions, and tighter mining regulations have pushed investors toward safe-haven assets like silver, even as miners struggle to keep up with demand.
Some analysts predict silver could climb from around $80 per troy ounce today to $150–$200 within five years, driven by these structural tailwinds. But for investors looking to ride that wave, the choice of ETF matters more than many realize.
The iShares Silver Trust ETF (SLV) is the heavyweight champion, with $38 billion in assets. But its smaller rival, the Abrdn Physical Silver Shares ETF (SIVR), which manages just $5 billion, may be the smarter long-term bet. Both funds hold physical silver and track the London Bullion Market Association’s spot price. Over the past year, their returns were nearly identical—around 130%. But over the past decade, SIVR has edged ahead with a 311% gain versus SLV’s 304%.
The difference comes down to fees. SLV charges an annual sponsor fee of 0.50%, while SIVR charges just 0.30%. Both funds sell a small amount of silver to cover those costs, meaning each share represents slightly less bullion over time. That drag compounds—and SIVR’s lower fee gives it a persistent edge. SIVR has also voluntarily waived 0.15% of its fee since 2009 to stay competitive. Even if that waiver ends, its fee would rise to 0.45%, still cheaper than SLV.
SLV remains the go-to for active traders and institutions due to its higher liquidity, tighter bid-ask spreads, and deeper options market. But for buy-and-hold investors focused on cost efficiency, SIVR is the clear winner.
Market Voices:
“I’ve been in SIVR for three years now, and the fee difference really adds up,” said Mark Chen, a 42-year-old retail investor from Austin, Texas. “SLV might be more liquid, but I’m not day-trading silver. I want to keep more of my gains.”
“Honestly, it’s ridiculous that SLV still gets all the attention,” said Linda Torres, a financial blogger and former commodities trader. “It’s like paying for a premium product and getting the same thing for less elsewhere. People just follow the crowd and don’t check the fine print.”
“Liquidity matters for big players,” noted James Hartfield, a portfolio manager at a mid-sized wealth firm in Chicago. “But for the average investor, SIVR is a no-brainer. Lower fees, same metal, better long-term returns.”
Before you buy any silver ETF, it’s worth noting that the Motley Fool Stock Advisor team recently identified what they believe are the 10 best stocks for investors right now—and neither SIVR nor SLV made the cut. The stocks that did have historically delivered massive returns. For example, Netflix was recommended in 2004, turning $1,000 into over $496,000. Nvidia, recommended in 2005, turned $1,000 into more than $1.2 million.
Stock Advisor’s average return stands at 968%, compared to 202% for the S&P 500. The latest top 10 list is available to subscribers.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.