10-Q: abrdn Silver ETF Trust Reports Strong NAV Growth in Q3 2024 Amid Rising Silver Prices

abrdn Silver ETF Trust's NAV increased by 8.72% in Q3 2024, driven by rising silver prices and an increase in outstanding shares.

Summary

• abrdn Silver ETF Trust's NAV increased to $1,453.3 million as of September 30, 2024, from $1,336.7 million at June 30, 2024.
• This represents an 8.72% increase for the quarter.
• The NAV per Share increased by 5.73% from $28.08 at June 30, 2024, to $29.69 at September 30, 2024.
• The increase in NAV was driven by a 5.82% rise in the price of silver, from $29.37 to $31.08 per ounce, and an increase in outstanding shares.
• Outstanding shares increased from 47,600,000 to 48,950,000 due to the creation of 2,400,000 shares and the redemption of 1,050,000 shares.
• For the nine months ended September 30, 2024, the Trust's NAV increased by 37.05% from $1,060.4 million at December 31, 2023.
• The NAV per Share increased 30.33% from $22.78 at December 31, 2023, to $29.69 at September 30, 2024.
• The Sponsor's Fee, net of waiver, was $1,040,755 for the quarter and $2,789,553 for the nine-month period, representing 0.30% of the Trust's ANAV on an annualized basis.
• Effective November 12, 2024, Brian Kordeck resigned as Treasurer and Chief Financial Officer of the Sponsor and Sharon Ferrari was appointed to the role.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the strong NAV growth driven by rising silver prices and increased investor interest, offset slightly by the inherent risks associated with silver price volatility and the change in CFO.

Positives

• The Trust experienced significant NAV growth in Q3 2024 and for the nine months ended September 30, 2024.
• The increase in the price of silver positively impacted the Trust's performance.
• The increase in outstanding shares indicates continued investor interest in the ETF.
• The Sponsor continues to voluntarily waive a portion of its fee, reducing the expense ratio to 0.30%.

Negatives

• The Trust experienced a net investment loss of $1,041,000 for the three months ended September 30, 2024.
• The Trust experienced a net investment loss of $2,790,000 for the nine months ended September 30, 2024.

Risks

• The Trust's performance is heavily reliant on the price of silver, which is subject to various market factors.
• Fluctuations in global silver supply and demand, inflation expectations, currency exchange rates, and geopolitical events could negatively impact the price of silver and the Trust's NAV.
• There is no assurance that silver will maintain its long-term value.

Future Outlook

The report does not provide specific forward-looking statements beyond the general discussion of factors influencing the price of silver.

Industry Context

This report reflects the performance of a silver-backed ETF, which is directly tied to the price of silver. The performance is influenced by macroeconomic factors affecting the silver market, such as inflation, industrial demand, and investment sentiment. Competitors include other silver ETFs such as iShares Silver Trust (SLV) and Sprott Physical Silver Trust (PSLV).

Comparison to Industry Standards

• Comparing abrdn Silver ETF Trust (SIVR) to iShares Silver Trust (SLV), both aim to reflect the price of silver, but they may differ in expense ratios, tracking error, and liquidity.
• SIVR's expense ratio of 0.30% (net of waiver) is competitive within the silver ETF market.
• Tracking error, which measures how closely the ETF's performance matches the underlying silver price, is a key metric for evaluating the ETF's efficiency.
• Liquidity, as measured by trading volume, can impact the ease of buying and selling shares, and should be considered when comparing SIVR to other silver ETFs.

Management Changes

Related Party Transactions

• The Sponsor and the Trustee are considered related parties to the Trust.
• The Trustee and the Custodian and their affiliates may from time to time act as Authorized Participants and purchase or sell Shares for their own account, as agent for their customers and for accounts over which they exercise investment discretion.
• In addition, the Trustee and the Custodian and their affiliates may from time to time purchase or sell silver directly, for their own account, as agent for their customers and for accounts over which they exercise investment discretion.

Stakeholder Impact

• Shareholders benefit from the increased NAV and NAV per Share due to rising silver prices.
• Authorized Participants are involved in the creation and redemption of shares, impacting the supply and demand of the ETF.
• The Sponsor receives fees for its services, impacting its financial performance.
• The Trustee and Custodian provide essential services for the Trust's operations.

Key Dates

Keywords

Silver ETF, abrdn, SIVR, NAV, Silver Price, ETF, Financial Results