Silver ETF vs. Silver Miners ETF: Which Has Held Up Better This Year?

Some commodity prices are soaring this year -- I'm looking at you, oil -- while other marquee commodities, namely gold, are sagging. Regarding the yellow metal and related exchange-traded funds (ETFs), these assets are slumping largely due to rising interest rates.

In simple terms, higher yields refresh bonds' income proposition, making gold and bullion-backed ETFs less appealing because those assets don't pay dividends or interest. Gold's woes are pertinent to investors considering silver and ETFs such as the iShares Silver Trust (NYSEMKT: SLV), as the two commodities are often highly correlated.

A major spot silver ETF is in a bear market, but a miners-focused fund has some bullish traits. Image source: Getty Images.

Compounding silver's 2026 woes is its reputation for overshooting gold moves for better or worse. This year, it's particularly bad, as the iShares ETF is off 27%, a loss more than 5 times that of SPDR Gold Shares (NYSEMKT: GLD). It's surprising that Global X Silver Miners ETF (NYSEMKT: SIL), the largest silver miners ETF, is performing significantly less poorly than its spot counterpart.

Sort of a gold medal

Based on a year-to-date loss of "just" 7.3%, the silver miners ETF wins out over its physically backed rivals, such as the iShares fund. That's nothing to write home about, but for investors evaluating silver ETFs as possible 2027 rebound candidates, the Global X fund's relative 2026 sturdiness may be instructive.

For starters, with inflation still running hot in the U.S. and the possibility that a change in control of Congress could lead to more government spending, the Federal Reserve may not cut interest rates anytime soon. Gold and silver could remain monetary policy stories, possibly weighing on funds such as the iShares ETF.

On the other hand, some experts believe that silver miners, including those held by the $3.9 billion Global X ETF, are poised to continue outperforming spot prices. Some of that thesis rests on the notion that miners don't necessarily need to hedge big moves in silver prices to boost their earnings.

SLV Total Return Level data by YCharts

And silver miners, broadly speaking, are in fundamentally sturdy positions because margins are high while leverage is declining. Plus, silver supply is constrained, potentially positioning dedicated silver miners to rally if prices of the metal do the same.

Economic clues matter

Investors who are evaluating silver ETFs also need to consider that industry is one of the primary demand drivers for this metal, which is to say, it is an economically sensitive commodity. Some market observers argue that recent weakness in silver prices may be a sign that the broader economy is poised to cool.

It's not a stretch to envision both the iShares and Global X ETFs struggling against the backdrop of a softer economy, but, as noted above, miners don't necessarily need silver prices to surge to generate solid earnings per share. That doesn't mean that if the economy slumps, the Global X fund will be immune, but it could continue outpacing spot prices.

Some banks are forecasting a silver rebound in 2027. If it materializes, both of these ETFs could benefit.

Todd Shriber 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.