WisdomTree expands its physical silver range with two new ETCs hedged in euros and pounds sterling

Exposure to silver with physical backing and daily hedging of EUR/USD and GBP/USD currency risk

The WisdomTree Physical Silver – GBP Daily Hedged (AGSE) is listed on the LSE as of today. Both instruments aim to offer exposure to physical silver whilst reducing the impact of EUR/USD and GBP/USD fluctuations for investors who do not trade in US dollars.

Features and costs

The two ETCs charge a management fee of 0.25% and a hedging fee of 0.10%. They are physically backed by silver allocated and stored in secure vaults, with a structure that combines low-cost access with institutional standards.

They operate in the typical manner of a physical commodity ETC: the product tracks the spot price of silver, whilst the currency hedging component neutralises, on a daily basis, fluctuations in the exchange rate between the dollar and the euro or the pound.

Why a hedged silver ETC?

These new products are aimed at investors trading in euros and pounds who wish to gain exposure to silver without their final return being affected by fluctuations in the EUR/USD and GBP/USD exchange rates. The launch responds to a growing demand for more tailored exposure, in a context where currency volatility can significantly impact returns for those not using the US dollar.

The profile of silver

Silver combines the characteristics of a precious metal and an industrial metal. It maintains a high correlation with gold and can benefit from macroeconomic uncertainty, but it also plays a direct role in industrial applications and the energy transition: solar panels, electric vehicles and advanced electronics are among its main uses.

Growing demand for renewable energy technologies and the expansion of industrial uses add a structural factor supporting demand for silver, alongside traditional macroeconomic factors. This offers investors exposure that covers both cyclical and long-term dynamics.

Nitesh Shah, Head of Commodities & Macroeconomic Research, Europe at WisdomTree, said: “ Silver offers a unique combination of demand drivers, both within the precious metals sector and in the industrial sector, making it a significant component in many portfolios. With the new currency-hedged ETCs, we enable investors to capitalise on this opportunity whilst managing currency risk, which is particularly important in the current macroeconomic environment.”

Alexis Marinof, CEO, Europe at WisdomTree, added: “WisdomTree has created the most comprehensive range of precious metals and commodities in Europe. These two new ETCs reflect our commitment to offering investors flexible and efficient solutions for accessing commodities. Expanding our range with these carefully designed exposures gives investors greater scope to allocate to the precious metal, choosing the solution that best aligns with their portfolio objectives.”

Key figures for the WisdomTree range

WisdomTree manages US$43.2 billion across its range of commodity ETPs.

Product details

In addition to these costs, there is a hedging fee of 0.10%, which is not included in the MER column of the table provided by WisdomTree.

Conclusions

WisdomTree is expanding its range of precious metals ETCs with two products tracking physical silver, hedged in euros and pounds sterling. The instruments aim to offer low-cost access to the silver market with a physically backed structure, whilst reducing exposure to EUR/USD and GBP/USD currency fluctuations. The launch comes against a backdrop of growing demand for silver, driven by both macroeconomic factors and industrial uses linked to the energy transition.