Is the Goldman Sachs Gold ETF or the abrdn Silver ETF a Better Inflation Hedge?
Key Points
Goldman Sachs Physical Gold ETF has a lower expense ratio of 0.18% compared to 0.3% for abrdn Physical Silver Shares ETF.
abrdn Physical Silver Shares ETF has delivered higher 1-year total returns but carries significantly higher volatility and a deeper historical drawdown.
Both funds offer 100% exposure to their respective physical metals, with the gold fund tracking gold bullion and the silver fund tracking silver bars.
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The comparison between abrdn Physical Silver Shares ETF (NYSEMKT:SIVR) and Goldman Sachs Physical Gold ETF (NYSEMKT:AAAU) centers on underlying commodity exposure, with the gold fund offering lower costs and historically lower volatility.
Investors often turn to precious metals as a hedge against inflation or market instability, seeking assets that maintain value when paper currencies falter. While both exchange-traded funds provide direct exposure to physical bullion held in secure vaults, the choice between silver and gold involves different price dynamics, industrial utility, and risk profiles.
Snapshot (cost & size)
| Metric | SIVR | AAAU |
|---|---|---|
| Issuer | Aberdeen Investments | Goldman |
| Share price (as of 8/10/26) | $62.44 | $43.27 |
| Expense ratio | 0.3% | 0.18% |
| 1-yr return (as of 8/10/26) | 70.7% | 28.9% |
| Dividend yield | n/a | n/a |
| Beta | 1.11 | 0.36 |
| AUM | $4.3 billion | $2.6 billion |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months.
The Goldman Sachs fund is the more affordable option for commodity exposure, featuring an expense ratio of 0.18%. By comparison, the abrdn fund costs 0.3% annually. While a difference of 0.12 percentage points may seem small, it can influence total returns for long-term bullion holders who prioritize cost efficiency.
Performance & risk comparison
| Metric | SIVR | AAAU |
|---|---|---|
| Max drawdown (5 yr) | (52.3%) | (26.3%) |
| Growth of $1,000 over 5 years (total return) | $2,775 | $2,514 |
What's inside
The Goldman Sachs Physical Gold ETF seeks to track the price of gold bullion by holding physical bars in secure vaults. It was launched in 2018. The Goldman Sachs Physical Gold ETF provides a straightforward way for investors to gain exposure to gold without the complexities of physical storage or futures contracts.
The abrdn Physical Silver Shares ETF functions similarly but targets the silver market instead. The abrdn fund was launched in 2009. While silver often moves in tandem with gold, it typically exhibits higher price swings due to its significant industrial applications and smaller market size compared to the gold market.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
Investors may have different reasons for holding gold and silver. Gold is generally considered a good hedge against inflation and a solid way to diversify your overall asset allocation. Silver is also considered a hedge against economic volatility, but it serves another purpose as well: It’s a commodity for the electronics, electric vehicle, and solar energy sectors. Whether you’re interested in silver or gold, investing in the metals via a fund is a more convenient way to hold the asset than storing physical bullion.
Choosing between the two funds will first and foremost come down to your overall goal. If you want to hold gold as a hedge against inflation or economic variability, the Goldman Sachs Physical Gold ETF is a way to do that fairly inexpensively.
If you want to hold silver, you should be aware of its dual roles as both an inflation hedge and a commodity. This can make silver more volatile than gold — note the greater max drawdown and the higher one-year price returns above. If you’re comfortable with or intrigued by that profile, then the abrdn Physical Silver Shares ETF should suit your needs.
If you’re truly looking to diversify your portfolio with precious metals, you may even consider holding both funds, or similar funds that are backed by their respective materials.
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Sarah Sidlow has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.
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