Silver or Gold: Is a Mining Stock Fund Better Than Holding Physical Bullion Through an ETF?
Global X Silver Miners carries higher fees and volatility but delivered 49% returns in one year. SPDR Gold Shares offers stability with lower costs and $134.6 billion in assets.
Overview
Investors choosing between Global X - Silver Miners ETF (NYSEMKT:SIL) and SPDR Gold Shares (NYSEMKT:GLD) may prioritize the operational leverage of silver miners or the relative price stability of physical gold bullion.
While both funds offer exposure to precious metals, they represent two distinct asset classes. The SPDR trust tracks the price of physical gold, offering a classic hedge against currency devaluation. The Global X fund invests in companies that extract silver, making it more sensitive to corporate earnings, management execution, and industrial demand.
Details
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. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 23.
Source
Originally published at www.fool.com.