SLV vs SGDM: Is a Silver ETF Better Than a Gold Miner Fund to Ride the Commodity Boom in 2026?

Deciding between iShares Silver Trust (NYSEMKT:SLV) and Sprott Gold Miners ETF (NYSEMKT:SGDM) requires weighing the benefits of direct physical silver price tracking against the operational risks and equity leverage of gold-mining firms.

Precious metals often act as a portfolio stabilizer, yet the path to exposure varies significantly between these two popular vehicles. The iShares Silver Trust offers a direct link to the silver market without corporate overhead. In contrast, the Sprott Gold Miners ETF targets companies that extract gold, offering a distinct risk-reward profile tied to mining efficiency and geological success.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The Sprott Gold Miners ETF is slightly more affordable with an expense ratio of 0.46%, providing exposure to a basket of productive mining equities. The iShares Silver Trust carries a higher 0.50% fee, which may appeal to investors who prioritize the security of physical metal storage and high liquidity over lower-cost equity participation.

Performance & risk comparison

What's inside

The iShares Silver Trust is a physically backed vehicle that holds all of its portfolio in silver bullion. It was launched in 2006. Its single-holding focus simplifies the investment thesis, as its performance is driven entirely by the spot price of physical silver rather than by the operational results of a management team.

The Sprott Gold Miners ETF focuses on the basic materials sector and usually invests at least 90% of its net assets in its benchmark index. It currently holds 39 positions. Its largest positions include Agnico Eagle Mines (NYSE:AEM) at 9.3%, Barrick Mining (NYSE:B) at 7.8%, and Newmont (NYSE:NEM) at 7.1%. The fund was launched in 2014. As a non-diversified fund, it can concentrate its holdings in a smaller number of gold miners located in the United States and Canada, making it sensitive to the specific financial health and production costs of its component companies.

Which fund is the better buy?

Both gold and silver prices have been on a historic rally in recent years. Gold has more than doubled over the past two years as investors have flocked to the yellow metal for its historic inflation-hedging characteristics. Silver has nearly tripled since the start of 2025, partly in tandem with gold and partly due to industrial demand from renewable energy applications.

Each of these funds gives you access to one or the other, but they are quite different.

Investors seeking exposure to the metal rally without the time and expense of buying physical commodities can buy the iShares Silver Trust ETF. The trust has had an exceptional year with a nearly 59% return. 2025 really was the year for silver, with the trust returning 150% in the calendar year. But of the four years before 2025, two had negative returns for the ETF. And even while the Silver Trust is an easier way to buy physical silver, in the U.S., gains from this type of fund are taxed as collectibles, which typically means a higher tax rate than for stocks for most investors.

Turning to the Sprott Gold Miners ETF, while it is an indirect play on the strength of bullion, it’s a pretty good one. Miner stocks correlate very closely with the price of gold. What’s good about gold miner stocks is that they disproportionately make profits as the gold price rises, given they have a fixed cost of production that doesn’t rise nearly as fast. That means that even if gold prices actually decline somewhat, miners will still be booking big profits. Ultimately, their stock prices will trace gold downward too, but it’s a less volatile way to play gold’s price.

Interestingly, performance is nearly identical over the long-term. SGDM has returned just under 16% annualized over the past 10 years, compared to just over 16% for SLV. Each has had three down years out of the past 10.

The better taxation profile and the income from dividends ultimately give SGDM the nod as the fund to buy.

For more guidance on ETF investing, check out the full guide at this link.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.