How can we decode Silver ETF pricing beyond just expense ratios?
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If you're diving into silver ETFs, here’s a tip: liquidity matters far more than management fees. In thin markets, the 'spread' (the gap between buy and sell prices) can actually eat into your profits faster than the fees will.
- Consider larger funds like Nippon India Silver ETF, which has ₹1,580 crore in assets.
- Bigger funds provide more stable prices and lower tracking errors.
- Avoid large price fluctuations similar to the 2025 silver spike.
- Focus on the top two or three easily tradable ETFs.
- Minor price differences tend to balance out over time.