iShares Gold Trust vs Aberdeen Physical Silver Shares ETF: Which Fund Is Better to Capture Booming Metal Prices Now?

Investors choosing between iShares Gold Trust (NYSEMKT:IAU) and Aberdeen Physical Silver Shares ETF (NYSEMKT:SIVR) must weigh the lower volatility and fees of gold against the recent high-performance momentum and higher risk of silver.

Both funds offer direct exposure to physical precious metals rather than to mining equities, eliminating the operational risks associated with individual companies. While iShares Gold Trust tracks the price of gold bullion, Aberdeen Physical Silver Shares ETF focuses on the market value of silver. These assets often serve as hedges against inflation or currency devaluation, yet they behave differently during economic cycles. Silver typically exhibits greater price volatility due to its dual role as a precious metal and a critical industrial component in sectors such as renewable energy.

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.

The iShares Gold Trust is the more affordable option, charging an annual expense ratio of 0.25% compared to 0.3% for the Aberdeen Physical Silver Shares ETF. While a five-basis-point difference may seem negligible over short periods, it can impact total returns for long-term commodity investors. Since neither of these funds generates income through dividends, the management fee represents the primary ongoing cost for shareholders.

Performance & risk comparison

What's inside

iShares Gold Trust seeks to track the daily performance of physical gold bullion prices, providing a transparent way for investors to access the gold market without the logistical hurdles of physical storage. The portfolio consists of gold bars held in secure vaults, and its position is 100% physical gold. With $61.6 billion in assets under management (AUM), the fund provides deep liquidity for institutional and retail investors. The trust was launched in 2005.

The Aberdeen Physical Silver Shares ETF endeavors to replicate the market value of physical silver by holding silver bullion in a secured vault. It’s all physical silver. Silver often exhibits significantly higher price volatility than gold, often leading to sharper rallies and steeper corrections depending on industrial demand. This silver-focused trust manages $4 billion in assets under management (AUM), making it a substantial vehicle in the commodity ETF space. The fund was launched in 2009.

Which fund is the better buy?

Both gold and silver prices have been on a fierce 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.

Investors seeking exposure to the metal rally without the time and expense of buying physical commodities directly have two good choices: gold and silver ETFs. Still, it is worth noting that while these are ETFs, holding physical gold or silver through them brings different tax implications. In the U.S., gains from these funds will be treated as collectibles, which typically means a higher tax rate than for stocks for most investors. If you hold them in a tax-advantaged account, such as an IRA, you should sidestep these taxes.

Both have shown good returns. In the 3-, 5-, and 10-year time frames as of March 31 for both funds, the iShares Gold Trust has returned 32.2%, 21.9%, and 13.8%, respectively. The Aberdeen Physical Silver Shares ETF has returned 44.5%, 24.3%, and 16.5% over the 3-, 5-, and 10-year lookbacks, respectively. Much of the returns for both over those time frames are heavily influenced by the huge rally of the past two years.

So which is the better buy? Silver has historically been secondary to gold in investors’ eyes, despite its greater use in industrial applications. There are times gold rallies and silver barely budges. That could happen again. If you’re buying a physical metal ETF like one of these two, go with gold, the IAU ETF,

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.