ETFs to Watch as Silver's Upward Momentum Continues

Silver prices have climbed to fresh highs, supported by rising safe-haven demand amid a fragile geopolitical backdrop and renewed transatlantic trade frictions, reinforcing investor interest and underscoring the metal’s strong momentum.

Silver has gained about 34.47% so far in January and nearly 220% over the past year, significantly outperforming gold, which has gained 78.55% over the past year.

Below, we have highlighted a few reasons that could keep silver on an upward trajectory in 2026.

Lower Rates, Brighter Prospects for Silver

With silver priced in U.S. dollars, any pullback in the greenback can spur global demand, pushing its price upward as it becomes more affordable for buyers holding other currencies. Per TradingView, the U.S. Dollar Index (DXY) has fallen 0.99% over the past five days and 9.12% over the past year. The index has recorded an all-time decline of 17.95%.

Anticipation of more Fed rate cuts in 2026 is another key tailwind for the precious metal. The greenback's value tends to move inversely with interest rate adjustments by the Fed. Interest rate cuts by the Fed make the dollar less attractive to foreign investors, as this weakens the U.S. dollar.

Persistent Geopolitical Tensions Keep Silver in Focus

Geopolitical tensions have been the primary reason behind market volatility so far in 2026. U.S. military actions in Syria and Venezuela and tensions in the Middle East and Asia’s major flashpoints have kept investors focused on safe-haven assets. Additionally, renewed transatlantic trade tensions add another layer of complexity to an already fragile geopolitical landscape.

Silver’s Industrial Edge

Often considered an industrial metal, silver plays a critical role in modern technology and clean energy solutions. Silver’s unique properties, like superior conductivity, durability and resistance to corrosion, make it nearly impossible to substitute.

According to the Silver Institute, from medical equipment to almost every computer, mobile phones, automobiles and household appliances to solar power systems, EV applications and advanced supercomputers used in AI, silver is an indispensable component across multiple industries.

Key Tailwinds That Could Keep Silver Shining in 2026

January has already seen significant market volatility, highlighting a turbulent start to the year and potentially setting the tone for the months ahead. Ongoing tensions between President Trump and Fed Chair Jerome Powell, raising concerns about the Fed’s independence, further add to the market volatility.

Additionally, extending portfolios by increasing exposure to a precious metal like silver could also serve as an effective diversification tool. Concentrated rallies in select stocks can expose markets to significant drawdowns, highlighting the need for broader portfolio diversification.

Silver ETFs to Explore

In today’s volatile market, frequent swings can challenge active strategies, highlighting the value of a long-term, passive approach. This strategy helps investors stay resilient amid market disruptions. For those looking to increase exposure to silver, maintaining a long-term investment horizon is particularly advisable.

Below, we have highlighted a few funds in which investors can increase their allocation to gain greater exposure to silver.

iShares Silver Trust SLV has gained 33.49% over the past month and 55.73% over the past three months. SLV has added 147.86% over the past year and charges an annual fee of 0.50%.

abrdn Physical Silver Shares ETF SIVR has gained 33.5% over the past month and 55.79% over the past three months. SIVR has added 148.31% over the past year and charges an annual fee of 0.30%.

Global X Silver Miners ETF SIL has gained 9.56% over the past month and 18.50% over the past three months. SIL has added 165.93% over the past year and charges an annual fee of 0.65%.

Amplify Junior Silver Miners ETF SILJ has gained 8.62% over the past month and 22.12% over the past three months. SILJ has added 184.02% over the past year and charges an annual fee of 0.69%.

iShares MSCI Global Silver Miners ETF SLVP has gained 10.60% over the past month and 27.36% over the past three months. SLVP has added 200.80% over the past year and charges an annual fee of 0.39%.

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This article originally published on Zacks Investment Research (zacks.com).

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