Gold vs. Silver Showdown: Should You Buy SGDM or SIL ETF?
Key Points
SIL and SGDM both target precious metals miners, but SIL focuses on silver while SGDM is tilted toward gold.
SGDM charges a slightly lower expense ratio and shows a smaller maximum drawdown over five years.
SIL has delivered a higher total return over the past year.
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The Global X - Silver Miners ETF (NYSEMKT:SIL) and the Sprott Gold Miners ETF (NYSEMKT:SGDM) offer concentrated exposure to mining companies, but their underlying focus diverges: SIL zeroes in on silver miners globally, while SGDM tracks gold producers primarily in the U.S. and Canada.
The two ETFs differ most in metal exposure, recent performance, and fund size, with SIL leading in recent returns and assets under management (AUM), while SGDM offers a lower expense ratio and milder historical drawdowns. This comparison unpacks how their cost, risk, performance, and portfolio details stack up for investors looking to invest in precious metals.
Snapshot (cost & size)
| Metric | SIL | SGDM |
|---|---|---|
| Issuer | Global X | Sprott |
| Expense ratio | 0.65% | 0.50% |
| 1-yr return (as of 2026-02-20) | 198.5% | 157.7% |
| Dividend yield | 1.0% | 0.95% |
| Beta | 0.96 | 0.73 |
| AUM | $6.7 billion | $829.2 million |
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.
SGDM is slightly more affordable, charging a 0.50% expense ratio versus SIL’s 0.65%. That’s one difference that may appeal to cost-conscious investors.
Performance & risk comparison
| Metric | SIL | SGDM |
|---|---|---|
| Max drawdown (5 y) | -56.79% | -49.68% |
| Growth of $1,000 over 5 years | $2,515 | $3,237 |
What's inside
SGDM targets gold miners, allocating 100% to basic materials and holding 40 positions as of its most recent data. Its largest stakes are in Agnico Eagle Mines (NYSE:AEM), Newmont (NYSE:NEM), and Wheaton Precious Metals (NYSE:WPM), with a portfolio focused on North American gold producers. Canada constitutes 75% of its portfolio. The fund has been operating for 11.6 years.
SIL, in contrast, is also 100% basic materials, but with a strict focus on silver. Its top holdings include Wheaton Precious Metals, Pan American Silver (NYSE:PAAS), and Coeur Mining (NYSE:CDE), providing broader exposure to global silver mining. SIL holds 39 companies and, like SGDM, avoids leverage or hedging overlays.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Precious metal stocks and ETFs have been hugely popular with investors in recent months, thanks to the unprecedented rally in gold and silver prices, with both hitting all-time highs in early 2026. The choice between the Global X - Silver Miners ETF and the Sprott Gold Miners ETF essentially comes down to whether you want to invest in gold, or silver.
SGDM isn’t just any other gold ETF, though. It focuses on larger gold companies with strong revenue growth and cash-flow profile, as well as a low debt-to-equity ratio. That filters out riskier gold mining stocks, making this a top-quality gold ETF. Its focus on quality companies also explains the ETF’s low beta.
SIL Total Return Level data by YCharts
SIL offers broad exposure to global silver mining companies, with a core goal of investing in large, liquid silver stocks. Unlike SGDM, which focuses on company fundamentals to decide if they will be included in the portfolio, SIL tracks the Solactive Global Silver Miners Total Return Index with a core focus on market capitalization and average traded volumes. That makes it riskier overall than SGDM, hence the greater volatility and a higher beta.
That difference in the ETF composition is crucial for investors to bear in mind, as it can have a considerable difference in the returns in the long term.
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Neha Chamaria 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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