Silver Price Dip: Is SLV or SLVP the Better ETF to Buy Now?

Both the iShares MSCI Global Silver and Metals Miners ETF (NYSEMKT:SLVP) and the iShares Silver Trust (NYSEMKT:SLV) target the silver market, but they do so in fundamentally different ways. SLVP offers diversified exposure to silver miners at a lower cost, while SLV tracks the price of silver directly, is far larger, and trades with greater liquidity.

SLVP invests in a global basket of mining stocks, whereas SLV is designed to mirror the spot price of silver itself. This comparison highlights key differences in cost, returns, risk, and portfolio structure to help investors understand which approach may appeal more, depending on 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 versus SLV’s 0.50%, making it the lower-cost option for silver exposure, though SLV’s higher fee is paired with much deeper liquidity and scale.

Performance & risk comparison

What's inside

The iShares Silver Trust is a nearly $36 billion fund that seeks to track the spot price of silver, offering direct exposure to the metal itself. SLV is structured as a trust, not a traditional exchange-traded fund, and it does not hold equities or pay dividends. Its returns are tied to changes in the price of physical silver. With almost 20 years of history, SLV is one of the most established and liquid ways to access silver in the market.

SLVP, in contrast, delivers exposure to the silver sector through a portfolio of 36 global mining stocks. Its largest positions as of March 31 include Hecla Mining (NYSE:HL), Fresnillo Plc, and First Majestic Silver (NYSE:AG). Returns can be influenced by company-specific developments and broader mining industry trends, not just the metal’s spot price.

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What this means for investors

The iShares Silver Trust is the largest silver ETF by assets under management. It holds silver bullion in the form of physical bars, stored in bank vaults. So buying this ETF is equivalent to owning physical silver without worrying about storage, costs, and liquidity. As of March 31, SLV held over 491 million ounces of silver, giving investors exposure to the day-to-day prices of silver without actually buying the metal.

iShares MSCI Global Silver and Metals Miners ETF, on the other hand, gives investors exposure to a basket of top-tier global silver mining companies. SLVP’s top holdings include the world’s largest silver mining companies in the world, including Fresnillo, Hecla Mining, and Indust Penoles. So one good thing about this ETF is that you’re getting exposure to silver miners worldwide, not just the U.S.

That also means that SLV is your best bet for direct exposure to silver prices. The value of SLVP, on the other hand, can depend on company-specific factors, although it’s a lower-cost ETF and also pays a dividend. If you simply want to hedge and bet directly on silver, SLV is a top choice, But if you want to capture the growth of silver mining stocks and earn a dividend, SLVP is a no-brainer ETF to buy.

Neha Chamaria 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.