Which Is the Better Precious Metals Mining ETF: Sprott's SGDM or iShares' SLVP?

Sprott Gold Miners ETF (NYSEMKT:SGDM) targets North American gold producers, while the iShares MSCI Global Silver and Metals Miners ETF (NYSEMKT:SLVP) offers lower-cost exposure to global silver and metal miners.

Investors looking to hedge against inflation or diversify with precious metals often turn to miners. While both of these exchange-traded funds concentrate on the basic materials sector, they offer exposure to different underlying metals and regional markets. This comparison examines how their costs, yields, and portfolios differ.

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. Dividend yield is the trailing-12-month distribution yield.

The iShares fund is more affordable with a 0.39% expense ratio compared to 0.46% for the Sprott fund. Investors seeking income might also favor the silver-focused ETF, which provides a higher payout than its gold-focused peer.

Performance & risk comparison

What's inside

Sprott Gold Miners ETF targets 49 holdings with 100% exposure to the basic materials sector. Its largest positions include Agnico Eagle Mines (TSX:AEM.TO) at 8.86%, Barrick Mining (NYSE:B) at 7.78%, and Newmont (NYSE:NEM) at 7.09%. The fund was launched in 2014. The fund has paid $0.73 per share over the trailing 12 months, which on its recent ~$66 share price works out to a 1.10% yield.

iShares MSCI Global Silver and Metals Miners ETF holds 36 stocks with 100% exposure to basic materials. Top holdings include Hecla Mining (NYSE:HL) at 13.83%, Industrias Penoles (PE&OLES.MX) at 10.48%, and First Majestic Silver (NYSE:AG) at 10.47%. It was launched in 2012. The fund has paid $0.70 per share over the trailing 12 months, which on its recent ~$32 share price works out to a 2.30% yield.

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What this means for investors

Gold and silver have both delivered historic gains in recent years, but silver has outpaced gold by a wide margin over the past year. And that gap shows up directly in how these two funds have performed. SLVP, which focuses on global silver and metals miners, has dramatically outpaced SGDM's North American gold miner portfolio over the trailing 12 months.

The reason comes back to silver's dual identity. Unlike gold, which moves primarily on investor sentiment and macro uncertainty, silver has significant industrial demand from solar panels, AI data centers, and electronics. That industrial dimension amplified silver's rally beyond what gold alone delivered.

SGDM offers the more defensive precious metals play. Its North American gold producers have decades of operating history and lower volatility than silver miners. SLVP costs slightly less and yields more, but introduces greater volatility and emerging markets exposure that SGDM avoids.

For investors new to precious metals mining, SGDM is the more stable starting point. SLVP rewards those who already hold gold exposure and want to add a higher-conviction bet on silver's industrial and monetary demand story.

Sara Appino 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.