A Top-Tier Rating Signals Opportunity for the Silver Mining ETF

The iShares MSCI Global Silver and Metals Miners ETF (SLVP) continues to demonstrate the powerful momentum that defined its performance last year. This fund, which ranked among the top-performing ETFs in 2025, has now received a premier "Strong Buy" rating from the analytical platform Danelfin, scoring a perfect 10 out of 10 points.

• Rating: 10/10 (Strong Buy)
• Assets Under Management: Approximately $1.14 billion USD
• Performance: More than 189% return over the past year

This top score suggests a high probability that the sector will outperform the broader market during the next quarter. The fund's expanding asset base reflects significant investor interest, a direct response to its substantial outperformance in the previous period.

This ETF employs a strategy focused on a concentrated portfolio of companies within the silver mining industry. Its largest holdings include major players such as Hecla Mining, Industrias Peñoles, and Fresnillo PLC. This focus means the fund can act as a leveraged play on the price of silver itself.

When the precious metal's price appreciates, mining operators often surpass the commodity's gains due to their operational leverage. Conversely, during market corrections, losses for these equities tend to be disproportionately steep. Given the inherent volatility of the silver sector, can the rally in mining shares be sustained?

Should investors sell immediately? Or is it worth buying iShares MSCI Global Silver and Metals Miners ETF?

Weighing the Risk-Reward Profile

A key theme for 2026 remains the performance gap between mining stocks and the physical commodity. While the iShares Silver Trust (SLV), which tracks the spot price of physical silver, has gained about 18% since the start of the year, the SLVP ETF exhibits a far more aggressive performance profile.

Compared to pure physical metal funds, the mining ETF carries significantly higher risk, which has historically manifested in more severe price drawdowns. For investors with a higher risk tolerance, this exposure has recently paid off handsomely: while physical gold funds advanced roughly 73% last year, the SLVP delivered a return exceeding 189% over the same timeframe.

The Driving Forces Behind Silver

The silver market is currently being driven by a combination of robust industrial demand and its traditional role as a hedge against currency risks. Early in 2026, the sector experienced considerable price volatility, with silver breaching historical levels before undergoing pronounced corrections.

Looking ahead, the ETF's trajectory will be determined not only by silver's spot price but critically by the operational performance of its largest constituent companies. Market participants are advised to monitor upcoming earnings reports from Hecla Mining closely. The pronounced volatility seen in late January serves as a clear indicator of the risks inherent within this sector.