What's the difference between this silver ETF and ETC?

Type_45

Hi all,

I want to invest in silver.  But due to the VAT issues with buying physical silver, and also due to the fact I don't want to take money out of my ISA, I would like to invest in silver via my ISA.

My preferred option, due it's low fees and it's availability on Iweb is  ISHARES PHYSICAL METALS PLC PHYSICAL SILVER ETC (SSLN)

Can someone please explain how this differs from an ETF?  iShares have a similar ETF option called "iShares Silver Trust ETF (SLV)".  Although having said that, I'm not sure SLV is available on iWeb.


Also, does anyone have any positive or negative feedback about SSLN?  From what I can see they hold physical silver and simply track the daily price of silver.  So seems straightforward and safe.

wmb194

Type_45 said:

Hi all,

I want to invest in silver.  But due to the VAT issues with buying physical silver, and also due to the fact I don't want to take money out of my ISA, I would like to invest in silver via my ISA.

My preferred option, due it's low fees and it's availability on Iweb is  ISHARES PHYSICAL METALS PLC PHYSICAL SILVER ETC (SSLN)

Can someone please explain how this differs from an ETF?  iShares have a similar ETF option called "iShares Silver Trust ETF (SLV)".  Although having said that, I'm not sure SLV is available on iWeb.


Also, does anyone have any positive or negative feedback about SSLN?  From what I can see they hold physical silver and simply track the daily price of silver.  So seems straightforward and safe.

You need to read their respective prospectuses but a quick Google turns up, "Commodity ETFs invest in a commodity—either by buying or selling the underlying commodity the ETF is meant to track, or buying or selling futures contracts on the underlying commodity. An ETC doesn't do this directly. An ETC is a note or debt instrument which is underwritten by a bank for the issuer of the ETC."

https://www.investopedia.com/articles/investing/032116/how-etc-different-etf-iau.asp

Type_45

wmb194 said:

Type_45 said:

Hi all,

I want to invest in silver.  But due to the VAT issues with buying physical silver, and also due to the fact I don't want to take money out of my ISA, I would like to invest in silver via my ISA.

My preferred option, due it's low fees and it's availability on Iweb is  ISHARES PHYSICAL METALS PLC PHYSICAL SILVER ETC (SSLN)

Can someone please explain how this differs from an ETF?  iShares have a similar ETF option called "iShares Silver Trust ETF (SLV)".  Although having said that, I'm not sure SLV is available on iWeb.


Also, does anyone have any positive or negative feedback about SSLN?  From what I can see they hold physical silver and simply track the daily price of silver.  So seems straightforward and safe.

You need to read their respective prospectuses but a quick Google turns up, "Commodity ETFs invest in a commodity—either by buying or selling the underlying commodity the ETF is meant to track, or buying or selling futures contracts on the underlying commodity. An ETC doesn't do this directly. An ETC is a note or debt instrument which is underwritten by a bank for the issuer of the ETC."

https://www.investopedia.com/articles/investing/032116/how-etc-different-etf-iau.asp

Yes I did read that.  But I've also read this:

iShares physically-backed Exchange Traded Commodities (iShares Physical ETCs) are series of secured metal-linked debt securities that trade on one or more regulated exchanges and offer investors easily accessible, liquid and transparent exposure to physical precious metals. iShares Physical ETCs provide investors with exposure to the performance of individual precious metals without the need to take physical delivery or trade commodity futures contracts. The iShares Physical Silver ETC seeks to track the day-to-day movement of the price of silver, less fees, by holding silver bullion. The silver bullion backs the securities issued and is valued daily at the London fix price. The silver bullion is held as allocated silver bars with the custodian, JPMorgan (and/or its sub-custodian). State Street acts as the Trustee. iShares Physical ETCs are exchange traded commodities and are neither funds nor exchange traded funds.

Albermarle

Maybe this will help...

The difference between Gold ETFs and Gold ETCs

The diversification principles of the regulatory investment fund framework (UCITS) do not allow to launch a UCITS fund with only one constituent. Due to this fact, gold is mainly available as an exchange-traded commodity (ETC) in European countries. These products are certificates issued by a financial institution collateralised with physical gold. In contrast to the EU, Swiss regulation allows ETFs for single commodities like gold.

 

Type_45

Silver is looking like a bargain today.

Gold price divided by silver price is above 80.

maxsteam

I suggest that you look at SIVR, SLV, DBS, etc..

Type_45

maxsteam said:

I suggest that you look at SIVR, SLV, DBS, etc..

None of those are available on iWeb.