SLVP Outperforms KSLV Amid Silver Price Volatility

The silver market's recent price swing has investors taking notice of two ETFs: SLVP and KSLV. Analysts have differing opinions on which one to choose, with some favoring SLVP for its total return potential.

SLVP, the iShares MSCI Global Silver and Metals Miners ETF, is rated Buy due to its strong earnings leverage to elevated silver prices. In Q2, miner holdings demonstrated realized prices and margins well above cost bases. This outperformance suggests that SLVP's upside participation may be more attractive than KSLV's income focus.

KSLV, the Kurv Silver Enhanced Income ETF, offers a 25.8% trailing yield but mostly consists of return of capital rather than actual income. Analysts argue that this has not compensated for weaker total returns versus SLVP, especially considering option strategies limit upside. As rates remain a key risk and the silver market is forecast to be in deficit, analysts favor SLVP over KSLV.