Stack of Physical Silver Bars

Global X Funds, the New York-based provider of Exchange Traded Funds, launched today the Global X Silver Miners ETF (SIL 16.7492 [+0.3392]). This exchange traded fund has a 0.65% expense ratio.

The Global X Silver Miners ETF is the only ETF in the world targeting silver mining companies. It tracks the Solactive Global Silver Miners Index, comprised of the largest and most liquid silver mining companies in the world. The majority of holdings are Canadian based companies but also include companies based in the US, Mexico, Peru, and Russia. As of March 31, 2010, the largest index components were Fresnillo, Industrias Penoles, Silver Wheaton, and Pan American
Silver.

Silver benefits from being an investment asset and from industrial and consumer applications. According to commodities analysts, silver demand should remain strong as a result of both investment interest and increased use in the consumer and industrial sectors. 54% of silver demand is industrial, and according BMO Capital Markets, silver industrial demand is expected to rise 19% this year.

Because SIL invests in silver mining companies, it provides a differentiated investment profile to investing in physical silver. For example, according to Nick Barisheff, President of Bullion Management Group Inc., “at the beginning of a bull market, it is well documented that mining shares typically rise, and often outperform bullion.”

“SIL provides investors with efficient and targeted exposure to silver mining companies, respectively. The metals are essential for the global economy and may see growing demand as the economic recovery continues,” said Bruno del Ama, CEO of Global X Funds.