SLV vs GDX: Is a Silver ETF a Better Buy Than a Gold Miner Fund in 2026?

Investors choosing between iShares Silver Trust (NYSEMKT:SLV) and VanEck Gold Miners ETF (NYSEMKT:GDX) are deciding between a direct bet on physical silver bullion and an equity-based investment in gold mining companies.

While both funds are popular vehicles for precious metals exposure, they behave differently. The iShares Silver Trust tracks the spot price of physical silver, whereas the VanEck Gold Miners ETF tracks an index of global mining companies. This means the VanEck fund introduces corporate risks and operational leverage that can cause its performance to deviate significantly from the spot price of gold.

Snapshot (cost & size)

The iShares Silver Trust is slightly more affordable with a 0.5% expense ratio compared to the 0.51% charged by the VanEck Gold Miners ETF. A one-basis-point difference in the annual fee may seem negligible, but it reflects the different costs associated with vaulting physical metal versus managing a diversified equity portfolio.

Performance & risk comparison

What's inside

The iShares Silver Trust is a commodity-based fund that holds its assets in physical silver bullion. Its portfolio is concentrated, all dedicated to the shiny metal. The trust tracks the market price movements of the metal rather than equity in mining corporations. It was launched in 2006.

The VanEck Gold Miners ETF tracks the MarketVector Global Gold Miners Index, focusing on the Basic Materials sector. Its largest positions include Newmont Corp (nyse:nem) at 10.5%, Agnico Eagle Mines Ltd (NYSE:AEM) at 10.2%, and Barrick Mining Corp (NYSE:B) at 8%. The fund provides exposure to 57 different companies involved in gold mining. It was launched in 2006.

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

Which looks like the better buy?

Investors seeking exposure to the metal rally without the time and expense of buying physical commodities can buy either of these ETFs and gain access to their preferred precious metal.

There is good reason to be interested: The two metals have been having one of their best runs in decades. 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.

The iShares Silver Trust ETF has had an exceptional year with a nearly 60% return. Last year—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. Indeed, year-to-date, SLV is down 20% as the metals rally has cooled and profit-taking has put prices into a short-term downtrend.

Owning a collection of gold mining stocks, like GDX, the VanEck Gold Miners ETF offers, isn’t a pure play on the price of gold, but it tracks rather closely. Studies show that the vast majority of the price movement of gold mining stocks is influenced by gold’s price.

The benefit for stock ETF holders is that when gold prices rise, they usually outpace operating costs. That’s because miners are pulling gold from the ground that they have already paid to acquire, while the royalties and other costs don’t rise as high (though they do rise). That means in the early years of a gold rally, the higher prices flow mostly to the bottom line. As a bonus, GDX pays a dividend because of its stock holdings, whereas SLV can’t, being a physical metal trust.

Yet because miners have rising costs, they can suffer more when the price of gold declines. Indeed, GDX is also down year-to-date, having lost 13.7% of its value. Over the 3-, 5-, and 10-year timeframes, GDX has returned annualized 34.8%, 17.9%, and 10.4%. Those returns are roughly what SLV has produced, too.

Yet a key difference to consider is that gold mining companies can make decisions that boost returns to shareholders, whether by increasing dividends or merging with another miner. Those gains can flow through to ETF shareholders like GDX.

In the end, it’s that flexibility from the companies themselves, the dividend GDX pays, and the fact that SLV probably triggers collectibles tax for U.S. investors, which is often higher than capital gains tax on equities that separates the two. For that reason, go with GDX to capitalize on the long-run precious metals rally.

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.