Commodity exchange-traded funds (ETFs) provide investors with exposure to commodities like gold, silver, oil, natural gas, and agricultural products. Further, they are traded on stock exchanges, offering liquidity and flexibility similar to stocks. Today, we will focus on two such ETFs – Amplify Junior Silver Miners ETF (SILJ) and Sprott Junior Uranium Miners ETF (URNJ) – with an upside potential of 50% or more projected by analysts over the next twelve months.
Let’s take a deeper look at these two ETFs.
Amplify Junior Silver Miners ETF (SILJ)
The SILJ ETF tracks the performance of small-cap companies involved in silver production, exploration, and development. The fund seeks to mirror the performance of the Nasdaq Junior Silver Miners Index, offering a way to invest in silver mining companies without directly purchasing the physical metal.
SILJ has $1.02 million in assets under management (AUM), with the top 10 holdings contributing 53.74% of the portfolio. Importantly, it has a low expense ratio of 0.69%. The SILJ ETF has returned 17.5% year-to-date.
Overall, the SILJ ETF has a Moderate Buy consensus rating. Of the 52 stocks held, 28 have Buys, 22 have a Hold rating, and two have a Sell rating. At $17.65, the average SILJ ETF price target implies about 50% upside potential.
Sprott Junior Uranium Miners ETF (URNJ)
The URNJ ETF focuses on the small, mid, and micro-cap companies involved in uranium mining. It aims to track the performance of the Nasdaq Sprott Junior Uranium Miners Index. The ETF generally invests at least 80% of its total assets in securities of the Index.
The URNJ ETF has $290.13 million in AUM and an expense ratio of 0.8%. Its top 10 holdings contribute 77.52% of the portfolio. Year-to-date, URNJ ETF has declined 9.2%.
On TipRanks, URNJ has a Moderate Buy consensus rating based on 16 Buys and 18 Holds assigned in the last three months. At $32.75, the average URNJ ETF price target implies a 51.33% upside potential.
Concluding Thoughts
ETFs are a low-cost, diversified, and transparent way to participate in the market. Investors looking for potential ETF recommendations could consider SILJ and URNJ due to the solid upside potential expected by analysts.
