SLV gives investors direct exposure to silver by physically holding the metal in vaults in London. As such, investors get exposure to spot silver (determined by the London Silver Fix), less fund expenses. As this fund is considered a collectible for tax purposes, taxes on long-term gains are quite steep. The expense ratio is also significantly higher than comparable funds. Still, SLV is the most liquid fund in its peer group and trades easily for retail and institutional investors alike. It is also the largest fund in its segment, suggesting stability for buy-and-hold strategies.