Spotlight: Global X Physical Silver ETF (ASX: ETPMAG)
Over the past 18 months, we've been using our Spotlight series to shine a light on our ETF portfolios. We've now expanded the series to focus on the individual ETFs that help power those portfolios or are available through InvestSMART Custom.
This time, we're focusing on the Global X Physical Silver ETF (ASX: ETPMAG), which is part of our Custom offering. Here's what you need to know.
About the Global X Physical Silver ETF (ASX: ETPMAG)
The Global X Physical Silver ETF (ASX: ETPMAG) gives investors a simple way to get exposure to physical silver without having to store the bullion themselves. Each unit is backed by physical silver, and the ETF aims to closely track the Australian dollar silver spot price, less the annual management fee.
According to Global X, the ETF may suit investors looking to diversify their portfolio with precious metals, hedge against inflation or take a view on silver prices. As with all commodities, the ETF is higher risk and tends to be more volatile than traditional equities and bonds.
Here are a few quick facts about ETPMAG:
- Investment manager: Global X
- Inception date: 2 January 2009
- Size: About $688 million
- Management fee: 0.49% p.a.
- Benchmark: Silver spot price
- InvestSMART rating: 4 stars
- Distribution frequency: No distributions
Why consider silver?
Silver can play several roles in a portfolio. Like gold, it's often seen as a store of value and a hedge against inflation or currency weakness. At the same time, it has significant industrial demand - particularly in electronics, solar panels and emerging green technologies.
This dual role, part precious metal and part industrial commodity, means silver's price is influenced by both investor sentiment and global economic activity. Adding silver exposure can help diversify a portfolio and potentially smooth returns during equity market downturns or inflationary periods.
Where is ETPMAG invested?
ETPMAG is a single-asset ETF - it invests directly in physical silver bullion. The silver is stored in vaults in London and, according to Global X, each bar is segregated, individually identified and allocated.
What is ETPMAG's management fee?
ETPMAG charges an annual management fee of 0.49%. While that's higher than broad equity ETFs, it's fairly typical for precious metal funds given the costs of storage, insurance and administration of physical bullion.
How has ETPMAG performed?
Because it tracks the spot price of silver, returns can be volatile. Over the long term, silver tends to move with investor demand for safe-haven assets, inflation expectations and industrial demand.
Silver has enjoyed a strong run recently and, therefore, so has ETPMAG. In the 12 months to the end of July 2025, it returned 28.0%. Over the longer term, results have also been solid, with the ETF returning an average of 10.4% a year over 10 years. Of course, keep in mind that past performance is not a guarantee of future returns.
ETPMAG doesn't pay distributions, so the returns are all from capital growth.
ETPMAG performance
|
1 year |
5 yrs p.a. |
10 yrs p.a. |
SI p.a.1 |
|
|
ETPMAG |
28.0% |
10.3% |
10.4% |
7.5% |
|
Benchmark |
28.6% |
10.9% |
11.0% |
8.0% |
Source: Global X. Returns for the period ending 31 July 2025. 1Since inception on 2 January 2009.
Key takeouts
ETPMAG offers an easy way to invest in physical silver without the hassle of storage or security. It's higher risk and doesn't generate income, but it can play a role in diversifying portfolios or be used as a tactical holding. Performance has been strong in recent years, although fees are higher than broad market ETFs.
Want to compare ETFs? Check out our handy online ETF filter tool. It can help you narrow down your options based on filters such as investment category or InvestSMART's star rating. If you'd like help selecting the right InvestSMART ETF portfolio for you check out our free statement of advice quiz. It will show you which one may best suit your goals and investment timeframe.
Frequently Asked Questions about this Article…
The Global X Physical Silver ETF (ASX: ETPMAG) is an exchange-traded fund that provides investors with exposure to physical silver. Each unit of the ETF is backed by physical silver, allowing investors to benefit from silver price movements without the need to store the bullion themselves.
Investing in silver through ETPMAG can help diversify your portfolio, hedge against inflation, and take advantage of silver's dual role as both a precious metal and an industrial commodity. Silver's price is influenced by investor sentiment and global economic activity, making it a potentially valuable addition to your investment strategy.
ETPMAG, like all commodity-based investments, carries higher risk and tends to be more volatile than traditional equities and bonds. The value of the ETF is closely tied to the fluctuating spot price of silver, which can be influenced by various economic factors.
ETPMAG invests directly in physical silver bullion, which is stored in vaults in London. Each silver bar is segregated, individually identified, and allocated, ensuring that the holdings are secure and properly managed.
ETPMAG charges an annual management fee of 0.49%. This fee is typical for precious metal funds due to the costs associated with storage, insurance, and administration of physical bullion.
ETPMAG has shown strong performance, with a 28.0% return in the 12 months ending July 2025. Over the longer term, it has delivered an average annual return of 10.4% over 10 years. However, it's important to remember that past performance is not indicative of future results.
No, ETPMAG does not pay distributions. The returns from this ETF are derived entirely from capital growth, as it tracks the spot price of silver.
You can use InvestSMART's online ETF filter tool to compare ETPMAG with other ETFs. This tool allows you to narrow down your options based on investment category or InvestSMART's star rating, helping you find the ETF that best suits your investment goals and timeframe.
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