Precious metals ETFs: Comparing gold bullion trusts and silver mining equities

Investors choosing between precious metals ETFs face a distinction between direct commodity exposure and investing in mining equities. The iShares Gold Trust (IAU) tracks the daily performance of gold bullion by holding physical metal, offering a lower expense ratio of 0.25% and lower volatility with a beta of 0.19.

In contrast, funds such as the Global X Silver Miners ETF (SIL) and the iShares MSCI Global Silver and Metals Miners ETF (SLVP) provide exposure to the silver market through mining companies. These equity-based funds offer higher potential returns and dividend yields but come with higher expense ratios—ranging from 0.39% to 0.65%—and significantly higher volatility, as evidenced by larger five-year maximum drawdowns.