Top-Performing Stocks Of The Best ETF Of Q3

ETFMG Prime Junior Silver ETF (SILJ - Free Reporttopped the list of best-performing ETFs in the third quarter, gaining nearly 28%. Being a leveraged play, metal miners tend to experience more gains than their bullion cousins in a rising metal market.

The risk-off trade environment has driven silver prices higher as the white metal is regarded as a store of wealth and an alternative investment to risky assets during economic and political uncertainty.

Though demand for silver has weakened due to a slowdown in industrial activity in major economies, ongoing growth in the global solar PV industry, rebound in global computer shipments as well as new sources of demand for sensors used in IoT and OLED lighting are providing boost to the requirement for silver. Notably, silver is used in a wide range of industrial applications. About 50% of the metal’s total demand comes from industrial operations while 30% emerges from jewelry/silverware/coins and medal manufacturers. Further, the latest rounds of upbeat data across the globe have eased recession fears that will perk up industrial demand for silver.

Further, the Fed easing policy has pushed the dollar down against a basket of currencies and makes dollar-denominated assets attractive to foreign investors, thereby raising the appeal for the white metal.

Let’s take a closer look at the fundamentals of SILJ.

SILJ in Focus

This product provides direct exposure to the silver mining exploration and production industry by tracking the Prime Junior Silver Miners & Explorers Index. It holds 32 stocks in its basket with higher concentration on the top four firms. Canadian firms take the lion’s share at 67.9% while the United States and Peru take the remainder. The fund has managed assets worth $115.2 million and trades in a good volume of about 266,000 shares a day. It charges 69 bps in annual fees.

Though most stocks in the fund’s portfolio delivered strong returns, a few were up in double digits in the third quarter. Below we have highlighted the five high-flying stocks in the ETF with respective positions in the fund’s basket:

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