SIL vs. SLVP: Which Silver ETF Should You Buy?

The Global X Silver Miners ETF (NYSEMKT: SIL) and the iShares MSCI Global Silver and Metals Miners ETF (NYSEMKT: SLVP) both target global silver mining equities. But SLVP pays a higher dividend and has outperformed over one year, while SIL charges higher fees.

Both SIL and SLVP are designed for investors seeking exposure to global silver miners, but they differ in scale, cost, and portfolio construction. This comparison breaks down their key differences in fees, performance, risk, sector exposure, and liquidity to help investors decide which may better fit their objectives.

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, with a 0.39% expense ratio compared to SIL’s 0.65%, and it also offers a higher dividend yield at 1.8% versus SIL’s 1.2%. However, SIL’s much larger AUM may appeal to those seeking greater scale or liquidity.

Performance & risk comparison

What's inside

SIL tracks a portfolio of 39 global silver mining companies, with 99% of assets in basic materials and 1% in energy. The fund is notably top-heavy, with Wheaton Precious Metals (NYSE:WPM) alone, making up over 22% of assets, followed by Pan American Silver (NYSE:PAAS) at 12% and Coeur Mining (NYSE:CDE) at 8%. This concentration in large-cap miners may lead to performance more closely correlated with the largest industry players. SIL has nearly 16 years of history, offering a long track record for those seeking established exposure.

SLVP, in contrast, has virtually all its assets in metals and mining, spread across 36 holdings. Its top positions include Hecla Mining (NYSE:HL), Fresnillo Plc (LSE:FRES.L), and Indust Penoles (PE&OLES.MX). These positions account for about 35% of the fund and represent a smaller share of the portfolio than SIL’s top three. There is no leverage, currency hedge, or other structural quirks in either ETF.

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What this means for investors

Both funds offer broad exposure to the top companies in the global exploration, mining, and production of silver. Silver has enjoyed a monster run over the past year, with rising industrial demand among the catalysts pushing its prices higher. When prices rise, miners will benefit.

Overall, the data show that SLVP is a superior pick. It offers a lower expense ratio and higher yield. These small differences in costs and yield may not seem like a big deal, but they do add up over time.

Above all, SLVP has outperformed SIL across multiple time periods. Over the last 10 years, SLVP is up 376% (including dividends), beating SIL’s 267% return. SLVP has also marginally outperformed over the trailing 5-year and 1-year timeframes.

To pile on further to SLVP’s advantages, it also suffered a slightly lower 5-year max drawdown of 56.2% compared to SIL’s 56.8% drop.

The only real drawback to the iShares fund is its small size and limited liquidity, with net assets of just $940 million. SIL, by comparison, is about five times larger. If you plan to move a lot of money in and out of either fund, SIL might be a better option.

Overall, most silver investors will likely prefer SLVP’s lower costs, higher yield, and superior return history.

John Ballard 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.