AAAU vs. SIL: Comparing Direct & Indirect Exposure to Precious Metals
Key Points
SIL has delivered a much higher 1-year return but comes with greater volatility.
AAAU is significantly less expensive to own and carries less market risk.
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Both the Goldman Sachs Physical Gold ETF (NYSEMKT:AAAU) and Global X Silver Miners ETF (NYSEMKT:SIL) target precious metals, but in sharply different ways. SIL holds a basket of silver mining companies, while AAAU instead tracks physical gold. This comparison breaks down their differences in cost, returns, risk, and underlying holdings.
Snapshot (cost & size)
| Metric | SIL | AAAU |
|---|---|---|
| Issuer | Global X | Goldman Sachs |
| Expense ratio | 0.65% | 0.18% |
| 1-yr return (as of Feb. 14, 2026) | 173.52% | 73.1% |
| Beta | 0.78 | 0.13 |
| AUM | $6.63 billion | $3.13 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
AAAU’s expense ratio is more than three times smaller than SIL’s, while SIL has nearly double the one-year return with increased volatility.
Performance & risk comparison
| Metric | SIL | AAAU |
|---|---|---|
| Max drawdown (5 y) | (55.63%) | (20.94%) |
| Growth of $1,000 over 5 years | $2,169 | $2,681 |
What's inside
Launched seven years ago, AAAU is designed to track the performance of physical gold, offering investors direct gold exposure by allocating 100% of its holdings in gold bars held in the U.K.
Launched 15 years ago, SIL tracks silver miners globally, holding 42 stocks and focusing entirely on basic materials. Its largest positions are Wheaton Precious Metals Corp. (NYSE:WPM), Pan American Silver Corp. (NYSE:PAAS), and Coeur Mining Inc. (NYSE:CDE), which are primarily Canadian mining companies. With over 15 years in operation and nearly $7 billion in assets under management, SIL relies more heavily on its top holding, Wheaton, which accounts for over 20% of its assets, compared to the other assets, which aren’t above 12%.
What this means for investors
In 2025, the precious metals market skyrocketed, with many metals often following Gold's price movements. Gold, along with other metals, is seen as a hedge against the U.S. dollar, especially during periods of geopolitical and economic turbulence.
With international tariffs and heightened tensions throughout 2025 and this year, demand and prices for metals have risen significantly. Since the start of 2025 up until Feb. 14, 2026, the price of gold per ounce has nearly doubled. However, investors should be aware of the volatility of the precious metals market, especially with AAAU, since it directly holds gold. Precious metals are highly volatile compared to stocks, and prices can fall as quickly as they rise.
In SIL’s case, silver’s value may continue to rise as it becomes increasingly rare and in demand, but silver mining companies may have to pivot operationally, as it’s estimated that over 70% of silver is mined indirectly as a byproduct of other metals. That’s because silver is difficult to mine on its own.
As various industries become increasingly reliant on it for products such as electric vehicles, solar panels, and even medical applications, silver demand outpaces production. This may leave companies forced to shift towards mining other metals, which can be effective, but would dilute the concentration of silver mining for these stocks.
Until then, both SIL and AAAU continue to benefit from the precious metal market’s meteoric rise in 2025 and so far in early 2026.
For more guidance on ETF investing, check out the full guide at this link.
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Adé Hennis 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.
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