Silver vs. Gold: Is SIL or IAU the Stronger Precious Metals ETF Right Now?
Key Points
IAU carries a much lower expense ratio and is far larger and more liquid than SIL.
SIL has delivered a much higher one-year return, but it's also experienced a more severe max drawdown.
SIL is concentrated in silver mining stocks, while IAU offers direct gold exposure without underlying company risk.
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The Global X - Silver Miners ETF (NYSEMKT:SIL) and the iShares Gold Trust (NYSEMKT:IAU) both provide access to precious metals, but their approaches and risk profiles differ.
SIL holds a portfolio of silver mining companies, giving investors indirect exposure to silver prices with added company-specific risk. IAU, on the other hand, is designed to track the price of physical gold, offering a more direct commodity play. This comparison unpacks the nuances between these two popular ETFs.
Snapshot (cost & size)
| Metric | SIL | IAU |
|---|---|---|
| Issuer | Global X | iShares |
| Expense ratio | 0.65% | 0.25% |
| 1-yr return (as of April 10, 2026) | 161.9% | 53.7% |
| Beta (5Y monthly) | 1.22 | 0.19 |
| Assets under management (AUM) | $5.13 billion | $70.5 billion |
| Dividend yield | 1.11% | N/A |
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.
IAU stands out as the more affordable option, charging a lower expense ratio. This cost gap could matter for long-term holders, especially given IAU’s much larger scale and liquidity. Also, while IAU doesn’t offer a dividend, SIL does — which could be appealing to income-focused investors.
Performance & risk comparison
| Metric | SIL | IAU |
|---|---|---|
| Max drawdown (5Y) | -55.79% | -21.82% |
| Growth of $1,000 over 5 years (total returns) | $2,373 | $2,701 |
What's inside
IAU offers exposure to the price of physical gold, holding gold bullion in trust for shareholders. With over 21 years in operation, it is one of the oldest and largest gold ETFs, managing over $70 billion in assets.
IAU’s portfolio consists entirely of gold, so investors avoid company-specific risks or sector tilts. The fund’s structure means performance closely mirrors spot gold prices, and it remains highly liquid with tight trading spreads.
By contrast, SIL invests in a basket of 38 silver mining companies, providing equity exposure to the silver industry. Its top holdings include Wheaton Precious Metals, Pan American Silver, and Coeur Mining.
SIL’s 100% basic materials tilt amplifies its exposure to the commodities cycle, and its returns may diverge from spot silver due to these equity factors.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Gold and silver can both be solid investments during periods of economic uncertainty, but these two ETFs differ significantly in performance and risk.
Silver has been more volatile in recent years. Its higher beta suggests more severe price fluctuations, and its steeper max drawdown indicates deeper downturns during its rough patches. Over the last 12 months, however, SIL has outperformed IAU with total returns of nearly 162% compared to around 54%.
One caveat to consider, though, is that SIL doesn’t just track the price of physical silver the way IAU does with gold. Its focus on silver mining companies can make it more sensitive to broader market swings and to the performance of those specific companies.
This can add a layer of risk and reward with SIL. Many investors seeking exposure to precious metals are looking to move away from the equity market, so SIL may carry more risk than some investors would prefer. The upside, though, is increased earning potential. Unlike IAU, SIL also offers dividend payments, which can provide a somewhat more stable source of long-term passive income.
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Katie Brockman 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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