Yahoo Finance Silver ETF (SLV) Hits New 52-Week High
For investors seeking momentum, iShares Silver Trust SLV is probably on the radar. The fund just hit a 52-week high and moved up 31% from its 52-week low of $18.97 per share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
SLV in Focus
The fund offers exposure to the day-to-day movement of the price of silver bullion. It charges 50 bps in fees per year (see: all the Precious Metals ETFs here).
Why the Move?
Silver has been an area to watch lately, given the surge in the metal’s price. The metal has been on the rise over the past month on renewed expectations of a Fed rate cut in June. A lower interest rate environment raises the demand for silver as the precious metals do not pay any interest, making them less appealing than alternative investments like bonds. As the global economy is improving, industrial and manufacturing demand is picking up, driving silver prices.
More Gains Ahead?
Currently, SLV has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook. Therefore, it is hard to get a handle on its future returns one way or the other. However, a weighted alpha of 15.62 and 20-day volatility of 26.3% show that there is still some promise for risk-aggressive investors who want to ride on this surging ETF.
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iShares Silver Trust (SLV): ETF Research Reports
