SLV vs. SGDM: More Direct Silver Exposure or Investing in Gold Mining?
Key Points
SGDM offers a 0.86% dividend yield because it invests in individual mining companies, while SLV offers none.
Over the past year, both funds delivered triple-digit returns.
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The iShares Silver Trust (NYSEMKT:SLV) and Sprott Gold Miners ETF (NYSEMKT:SGDM) both offer access to precious metals, but SLV tracks the price of physical silver, while SGDM invests in a concentrated basket of gold mining stocks. This comparison highlights their cost, recent returns, volatility, and how each ETF may fit in a portfolio focused on metals or mining equities.
Snapshot (cost & size)
| Metric | SLV | SGDM |
|---|---|---|
| Issuer | iShares | Sprott |
| Expense ratio | 0.50% | 0.50% |
| 1-yr return (as of Feb. 14, 2026 | 137.63% | 149.88% |
| Beta | 0.41 | 0.53 |
| AUM | $44.77 billion | $823.11 million |
Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months.
Both SLV and SGDM charge a 0.50% annual fee, and share similar Betas and one-year returns. SLV does have an exponentially higher valuation, partially because it has been on the market for more than 8 years, compared to SGDM.
Performance & risk comparison
| Metric | SLV | SGDM |
|---|---|---|
| Max drawdown (5 y) | (37.65%) | (45.05%) |
| Growth of $1,000 over 5 years | $2,764 | $2,667 |
What's inside
Launched 11 years ago, SGDM invests in 43 stocks within the global gold mining industry. The largest positions include Agnico Eagle Mines Ltd. (TSX:AEM.TO), Newmont Corp. (NYSE:NEM), and Wheaton Precious Metals Corp. (TSX:WPM.TO).
For nearly 20 years, SLV has been offering investors exposure to silver. Designed to track the price of silver, the fund’s holdings comprise 100% silver bullion held in London.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Investors should be aware that precious metal ETFs can exhibit abnormal volatility due to the inherent volatility of the metals they hold. Silver can be 2-3 times more volatile than gold because of its smaller market size.
Over the long term though, silver and many other lower-volume precious metals tend to move directionally with gold, similar to how many smaller cryptocurrencies follow Bitcoin (CRYPTO:BTC). So when looking only at the general trend direction, both ETFs have appeared nearly identical over recent years.
Now is a strong period for precious metals, as gold and silver typically perform better during economic uncertainty. Tariffs and global tensions are affecting global markets, and gold and silver tremendously benefited from this trend in 2025 and into 2026.
Both SLV and SGDM would make a great duo to diversify a portfolio with precious metal-related funds. However, if choosing between the two, it will essentially come down to whether investors prefer silver or gold, and/or whether they’d prefer market-related stocks vs. physical silver.
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Adé Hennis 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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