SPDR Gold Shares vs. iShares Silver Trust: Looking for an Inflation Hedge? One Could Have the Edge
Key Points
SPDR Gold Shares provides direct exposure to physical gold, offering investors a traditional store of value and a potential hedge against inflation and economic uncertainty.
iShares Silver Trust tracks physical silver, which benefits from both investment demand and industrial uses.
SPDR Gold Shares charges a lower 0.4% expense ratio compared to 0.5% for iShares Silver Trust.
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For investors seeking a hedge against inflation or currency devaluation, physical commodity ETFs offer a convenient alternative to storing bars or coins. Gold and silver often move independently of stocks and bonds, providing potential diversification. This comparison looks at how SPDR Gold Shares (NYSEMKT:GLD), the leading gold fund, competes with iShares Silver Trust (NYSEMKT:SLV) , one of the primary silver trusts, in terms of cost, stability, and long-term potential as an inflation hedge.
Snapshot (cost & size)
| Metric | SLV | GLD |
|---|---|---|
| Issuer | iShares | SPDR |
| Share price | $48.72 (as of 2026-10-23) | $366.61 (as of 2026-10-23) |
| Expense ratio | 0.5% | 0.4% |
| 1-yr return (as of 2026-10-23) | 10.3% | (3.2%) |
| Dividend yield | n/a | n/a |
| Beta | 0.52 | 0.19 |
| AUM | $26.9B | $134.4B |
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months.
SPDR Gold Shares is the more affordable option with a 0.4% expense ratio, which is 0.1 percentage points lower than the 0.5% fee for iShares Silver Trust. While a 10-basis-point difference may seem minor, it can influence the total cost of ownership for long-term commodity holders.
Performance & risk comparison
| Metric | SLV | GLD |
|---|---|---|
| Max drawdown (5 yr) | (53.9%) | (26.4%) |
| Growth of $1,000 over 5 years (total return) | $2,161 | $2,185 |
What's inside
SPDR Gold Shares provides direct exposure to physical gold bullion held in secure vaults, aiming to track the spot price minus operational expenses. The fund aims to lower the hurdles of ownership, such as insurance and storage costs, for individual investors. Its portfolio is cut and dry as it owns Physical Gold at 100.00%. The fund was launched in 2004 as a vehicle for spot price exposure.
iShares Silver Trust functions similarly by holding physical silver to mirror market price movements for the metal. Like its gold-focused peer, it removes the logistical challenges of buying and storing physical bullion. Its portfolio consists of Physical Silver at 100.00%. The fund was launched in 2006 and serves as a primary tool for investors looking to capitalize on silver's price action.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buy
The truth is I like both of these ETFs for investors looking to protect their purchasing power over the next decade, although for slightly different reasons.
Gold benefits from growing demand among central banks seeking to diversify their reserves away from U.S. dollar assets that could be subject to sanctions. With government deficits expanding and investors increasingly interested in hard assets, the long-term case for owning gold remains compelling.
Silver shares many of these characteristics but offers an additional source of demand through its industrial applications. The global AI buildout, expanding electrical infrastructure, and efforts to bring manufacturing back to Western economies could all support demand for silver in the years ahead.
However, it is worth pointing out that recent price action warrants caution. Following a remarkable rally that pushed silver above $110 per ounce earlier this year, prices have since fallen more than 50%. Gold has also retreated roughly 25% from its January highs. Amidst a backdrop of higher interest rates and a stronger U.S. dollar, these could create further pressure on both metals in the near term.
For long-term investors, SPDR Gold Shares looks like the better core holding. Its lower volatility and established role as a reserve asset make it more suitable for protecting purchasing power, while iShares Silver Trust offers additional upside potential through industrial demand for investors willing to tolerate greater price swings.
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RJ Fulton has positions in iShares Silver Trust. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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