Saturday, April 29, 2006

 

A Look At The Silver ETF

Here is some information on the new silver ETF. "A silver-exchange traded fund launched on the American Stock Exchange Friday finished with a volume of 2.342 million shares on its first day, reported the American Stock Exchange. The closing price for the iShares Silver Trust was $138.12, which was up from an opening of $129."

"The ETF is designed to allow investors to buy or sell shares similar to a stock, except the ETF closely tracks the day-to-day movement of the commodity. It trades under the symbol SLV."

"Total shares outstanding, ounces of metal in the trust and other data will be posted on a regular basis at the Web site www.ishares.com, as is the case for the iShares Comex Gold Trust. While Barclays is the trust sponsor, the Bank of New York is the trustee. J.P. Morgan Chase Bank N.A., acting through its London branch, is custodian."

Additional info from (WARNING!) the PDF file prospectus, which doesn't allow copy and paste, apparently. The trust allows investors to place market, limit, or stop-loss orders. It can be shorted, even on a down-tick.

The sponsors fee accrues daily, is paid monthly in arrears and is calculated at an annualized rate of .50% the net asset value. There is no index. It is set up as a grantors trust. It is not a derivative. Shareholders will not receive a 1099. The trust will forward a letter with information on calculating pro-rata shares of income and expenses.

Comments:
we should point out, CEF is a gold and silver ETF too.

I wonder if anyone will use the gold/silver ratios to trade GLD(or IAU) vs. SLV?
 
wmbz, do you know how CEF is taxed in the US? Is it also 28% like SLV, or is it taxed like stock?
 
If the link works, here is the iShares site.
 
2.342 million shares traded, yet there was only 150K shares (1.5 million oz) worth of silver initially deposited. Looks like they'll be needing a lot more silver!
 
Sorry for the delay; I haven't been able to get blogger to work this afternoon. Please check back.
 
Post a Comment

<< Home

This page is powered by Blogger. Isn't yours?