What SLV actually is

SLV is a trust that holds physical silver in vaults and issues shares that track its price. Owning a share is a way to hold silver without storing bars yourself.

What is inside

Only silver. Silver is used both as an investment and as an industrial metal in electronics, solar panels and other products, so its price reacts to both the economy and investor demand.

Income

SLV does not pay a dividend or interest. Its return comes only from the change in the price of silver, less the fund’s fees. It is therefore not suited to income investors.

What to keep in mind

  • Volatility. Silver prices swing more than gold.
  • No cash flow. Nothing is paid while you wait.
  • Tax rules. Some commodity trusts are taxed differently from stock funds.

Quick take

SLV is a way to hold silver, a speculative commodity with no income. Compare it with gold funds like GLD if you want a precious-metals allocation.