iShares Gold Trust vs Aberdeen Physical Silver Shares ETF: Which Fund Is Better to Capture Booming Metal Prices Now?
Silver surged 65.9% in one year but endured a 50.9% drawdown. Gold delivered steadier returns with half the volatility.
Overview
Investors choosing between iShares Gold Trust (NYSEMKT:IAU) and Aberdeen Physical Silver Shares ETF (NYSEMKT:SIVR) must weigh the lower volatility and fees of gold against the recent high-performance momentum and higher risk of silver.
Both funds offer direct exposure to physical precious metals rather than to mining equities, eliminating the operational risks associated with individual companies. While iShares Gold Trust tracks the price of gold bullion, Aberdeen Physical Silver Shares ETF focuses on the market value of silver. These assets often serve as hedges against inflation or currency devaluation, yet they behave differently during economic cycles. Silver typically exhibits greater price volatility due to its dual role as a precious metal and a critical industrial component in sectors such as renewable energy.
Details
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.
Source
Originally published at www.fool.com.