Amid Soaring Gold, Silver Prices, Bank of America Is Bullish On These 4 Promising Metal ETFs For Good Investment Returns

In the wake of surging gold and silver prices, Bank of America has highlighted four exchange-traded funds (ETFs) that offer attractive exposure to precious metals.

What Happened: The top-ranked ETFs by BoFA include abrdn Physical Silver Shares ETF (NYSE:SIVR), iShares Silver Trust (NYSE:SLV), Invesco DB Precious Metals Fund (NYSE:DBP), and abrdn Physical Precious Metals Basket Shares ETF (NYSE:GLTR), CNBC reported on Sunday. These ETFs, rated as “more attractive” by Bank of America, encapsulate a range of precious metals such as silver, gold, palladium, and platinum.

Bank of America’s research suggests that a portfolio with 40% exposure to broad commodities would have outpaced a similar portfolio with U.S. Treasury bonds by 0.8% annually since 1945. Despite strong performance post-Covid-19, long-term commodity returns remain near record lows, as per the bank. However, Bank of America anticipates a reversion to the mean for commodities.

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Jared Woodard, the bank’s ETF strategist, stated, “Commodities are still at all-time lows relative to financial assets, and this ratio would likely move higher in a sustained shift to a 5% world.”

The abrdn Physical Silver Shares ETF SIVR is the most cost-effective silver fund in Bank of America’s coverage, with a total expense ratio of 0.50%. The bank’s commodity team is also bullish on silver, predicting spot prices to hit $26.46 per ounce by the end of 2024, and $32.50 per ounce by the end of the next year.

Why It Matters: The spotlight on these ETFs comes at a time when investors are increasingly turning to precious metals. Investors were looking at gold miners as spot gold prices stalled.

This trend was followed by a breakout in silver, gold, and copper prices. This shift was particularly notable for companies like Newmont (NYSE:NEM), which are integral to the precious metals supply chain.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari