Which Metal You Own Matters More Than Which ETF You Pick

iShares MSCI Global Silver and Metals Miners ETF (NYSEMKT:SLVP) and Sprott Gold Miners ETF (NYSEMKT:SGDM) differ most on recent performance, volatility, and their tilt toward silver versus gold, with SLVP offering a higher one-year return and SGDM showing lower risk metrics.

Both the iShares MSCI Global Silver and Metals Miners ETF (NYSEMKT:SLVP) and the Sprott Gold Miners ETF (NYSEMKT:SGDM) give investors access to mining companies in the basic materials sector, but their approaches and risk-return profiles diverge sharply. This comparison looks at cost, returns, risk, portfolio makeup, and trading considerations to help clarify which fund may appeal more depending on an investor’s goals.

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.

SLVP is more affordable to own annually with a 0.39% expense ratio, while SGDM’s fee is higher at 0.50%. SLVP also pays a higher dividend yield at 1.7% compared with SGDM’s 1.0%, which may appeal to income-oriented investors.

Performance & risk comparison

What's inside

The Sprott Gold Miners ETF focuses on gold miners from the U.S. and Canada, tracking an index of companies whose stocks or American Depositary Receipts are listed on major North American exchanges. With 39 holdings and nearly 12 years of history, its largest positions are Agnico Eagle Mines Ltd. (TSX:AEM.TO), Barrick Mining Corp. (TSX:ABX.TO), and Wheaton Precious Metals Corp. (TSX:WPM.TO), reflecting a heavy gold tilt and some concentration among top names.

SLVP, by contrast, strictly targets companies engaged in silver exploration or metals mining, also with 100% basic materials exposure. Its top holdings—Hecla Mining (NYSE:HL), Indust Penoles (PE&OLES.MX), and Fresnillo Plc (LSE:FRES.L)—emphasize silver over gold, and it holds 36 stocks.

What this means for investors

SLVP and SGDM are both mining ETFs in the basic materials sector, but they're not really competing for the same thing. SGDM is a gold miners fund. SLVP is a silver and metals miners fund. That distinction matters more right now than it usually does, because silver has been outperforming gold over the past year, which goes a long way toward explaining why SLVP's one-year return looks so much better than SGDM's. The tradeoff is that silver carries more volatility than gold — industrial demand layers on top of its store-of-value role, making it more sensitive to economic cycles. That's reflected in SLVP's higher beta, and it's why SGDM's lower drawdown isn't a knock on the fund — it's a feature for investors who want precious metals exposure with less swing. Neither fund is a natural standalone holding for most portfolios — they're tilts. SGDM fits as a defensive hedge within a broader equity allocation; SLVP fits as a higher-conviction bet on industrial and precious metals momentum. Owning both isn't redundant either, since the underlying metal exposure barely overlaps. The more useful frame isn't silver versus gold — it's how much cyclical risk you want sitting in your metals sleeve.

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

Seena Hassouna 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.