2 Precious Metals ETFs Making Important Headlines

With gold and silver, particularly the latter, delivering some parabolic moves of late, it's not surprising that some exchange-traded funds are benefiting.

Moreover, it's not surprising that some of the related ETFs are making headlines as both metals reside at multi-year highs. In the case of silver, the white metal is higher by 80% off its 2020 lows.

Indeed, Tuesday brought some compelling news flow for a pair of high-flying gold and silver ETFs. Here are the funds making notable headlines.

VanEck Merck Gold Trust (OUNZ)

Long ago, critics asserted that gold ETFs defeated the purpose of bullion exposure because the funds are redeemed for cash, or fiat currency. More than six years ago, the VanEck Merck Gold Trust OUNZ debuted with a unique concept: offering investors physical delivery of gold when shares of the fund are sold and it's a promise that's been made good on.

On Tuesday, VanEck announced that the $311 million OUNZ is getting a lower fee, moving from 0.40% a year to 0.25%, or $25 on a $10,000 investment.

“Gold investing is part of VanEck’s DNA and we’ve long made it a point to be able to offer investors a full menu of opportunities through which they can add exposure to gold bullion and gold miner equities,” said Brandon Rakszawski, Director of ETF Product Development with VanEck, in a statement. “With this fee reduction, OUNZ should be an even more attractive option for those investors seeking gold and for whom the ability to request possession of their gold is an appealing added benefit.”

ETFMG Prime Junior Silver Miners ETF (SILJ)

Fresh off being highlighted here yesterday, the ETFMG Prime Junior Silver Miners ETF SILJ is now a member of the $300 million in assets under management club. More importantly, SILJ is up 39.21% in just a month.

“The spike in it's growth is attributed to a surge in demand for commodities such as silver and gold, during this time of volatile, as well as a slow down in production, due to coronavirus outbreaks among silver miners,” according to ETFMG. “Precious metals have also been enjoying demand as a hedge against rising inflation expectations with the Federal Reserve writing a blank check to support market liquidity and economic growth. Gold was on pace for its sixth consecutive weekly gain on Friday.”

Silver ETFs, including SILJ, could be poised for more upside as analysts expect spending on 5G and renewable energy — end markets for industrial silver use — will benefit the metal's prices.