European exchange-traded products giant ETF Securities Ltd. has entered the United States with a fund investing in silver. The new ETF Silver ETF (NYSEArca: SIVR), a grantor trust structured under the 1933 Act, goes head-to-head with a competing exchange-traded fund from iShares.

SIVR launched on Friday and traded around 3,400 shares. That compares to some 3.9 million shares traded on the day by the entrenched leader, the iShares Silver Trust (NYSE Arca: SLV). Since coming to market in April 2006, SLV has attracted nearly $3.9 billion in assets.

If SIVR can grab even part of its rival's volume and assets, it could play into a fast-growing part of the commodities market that has historically been difficult for individual investors to tap.

The new silver ETF also arrives as prices for silver have been showing renewed strength. SLV, for example, has returned more than 20% so far this year. That comes after a better-than 23% loss last year. In the past three months, the ETF has risen almost 8%, as its volume has averaged roughly 8.9 million shares a day (in June, that number soared to 11.3 million; through Friday, shares of SLV were averaging almost 7.5 million shares traded a day so far in July).

The just-launched SIVR will come with a lower introductory expense ratio—0.30%, compared to SLV's 0.50%. (But the new fund's ER is waived at that level only until July 24, 2010. After that date, it's scheduled to rise to 0.45%.)

As observed by IndexUniverse.com last year when ETF Securities first filed to enter the U.S. market, SIVR appears to be a somewhat "me-too" choice for the London-based exchange-traded products sponsor. Both the new ETF and SLV hold silver bullion as each fund's sole asset.

In Europe, the company has built a reputation for being on the cutting edge of new product development. It offers a huge variety of funds, including leveraged, inverse and inverse-leveraged commodity products, as well as an unmatched variety of single commodity funds. More than likely, the silver fund is an opening salvo, laying the groundwork for more innovative launches in the future.