The world’s largest silver ETF, the iShares Silver Trust (SLV), tracks the price of silver by holding physical bullion. SLV was designed to be an accessible and inexpensive alternative to owning physical silver, allowing investors to purchase shares that represent a fractional beneficial interest in the silver held by the trust.

However, the volume of silver traded through the SLV ETF is often dwarfed when compared to the daily volume transacted via Silver futures.

• SLV, which tracks silver prices minus fees and expenses, has an average daily volume (ADV) of 24M shares.¹ Since one share of SLV represents approximately 90% of a troy ounce of silver,² the equivalent number of silver traded is around 22M troy ounces.
• Our new, smaller-sized Silver contract, 100-Ounce Silver (SIC) futures, trades in a highly efficient, transparent marketplace. The standard-sized Silver futures contract (5,000 troy ounces) sees significant daily volume at around 85K contracts ADV (2025 year-to-date numbers), the equivalent of 423M troy ounces a day. The 100-Ounce Silver futures contract is designed to attract a wide range of market participants, who are also active in the standard-sized contract, and will therefore benefit from this established liquidity infrastructure.

The transparency of futures markets, where all transactions, bids and offers are publicly available in real-time, enhances liquidity and provides transparent price discovery.

Silver ETFs like SLV, by themselves, do not offer inherent leverage. While a securities broker may allow margin trading to purchase ETF shares, this is essentially a loan with associated interest costs.

A unique and significant feature of futures contracts is the built-in leverage provided through the margining system. Futures margin is not a partial payment for the underlying asset (silver) but rather "good-faith money" placed on deposit to guarantee performance. Margin can sometimes be as low as 5% of the notional value of the contract. This offers a tremendous advantage for investors looking to capitalize on market opportunities with a relatively small amount of capital. A single 100-Ounce Silver futures contract has a much larger notional exposure than the amount of capital an investor would need to put up as margin.

This ability to use leverage means that a relatively modest investment in a margin account allows a futures trader to benefit from the price movement of the full 100 ounces of silver per contract. An investor in SLV, using the same initial capital, would only be able to purchase shares equivalent to a fraction of that amount of physical silver.

Assumption, SLV trades at $50/share, silver trades at $55.56$/troy ounce. Each share represents 90% of a silver troy ounce, futures margin at 5%. Margin levels are subject to change. Note that leverage magnifies both profits and losses. Prudent risk management, such as using stop-loss orders, is essential for futures traders.

An investor in a silver ETF like SLV is exposed to ongoing costs and fees, such as management and administrative expenses, in addition to brokerage costs. Since silver (a physical commodity) produces no income, the ETF must occasionally sell some of its underlying silver bullion to cover these costs. This consistent sale of silver diminishes the overall holdings of the fund over time, creating a tracking error that erodes the ETF's value relative to the spot price of silver.

Silver futures contracts do not experience this tracking error issue. Investors are directly exposed to the price of silver without the layer of management fees and administrative costs that require the sale of the underlying metal. While long-term futures investors must "roll" their positions forward before expiration, potentially incurring new brokerage costs and price impacts. In contrast, futures contracts avoid the continuous management fee structure typical of ETFs.

Tax implications: Silver futures may offer tax advantages for certain investors. However, this is not tax advice, and investors should consult a tax professional.

Both the 100-Ounce Silver futures contract and the SLV ETF allow investors to participate in the price movement of silver. However, when the primary goal is to benefit from the rise or fall of the silver price in the most capital-efficient and transparent manner, Silver futures, including the newly launched 100-Ounce Silver futures contract, are often the logical choice. They offer a highly liquid and accurate pricing mechanism, the ability to tailor a trading strategy using leverage and the security of an exchange-guaranteed marketplace, all while avoiding the management fees and tracking error inherent in silver ETFs.

¹ Based on 2025 YTD data, source.

² The fund holds 517M ounces of silver and has 570M shares outstanding, source.