SLV vs GDX: Is a Silver ETF a Better Buy Than a Gold Miner Fund in 2026?
Physical silver delivered 62.6% returns while mining equities gained 47.3%, but both funds carry comparable expense ratios and substantial volatility.
Overview
Investors choosing between iShares Silver Trust (NYSEMKT:SLV) and VanEck Gold Miners ETF (NYSEMKT:GDX) are deciding between a direct bet on physical silver bullion and an equity-based investment in gold mining companies.
While both funds are popular vehicles for precious metals exposure, they behave differently. The iShares Silver Trust tracks the spot price of physical silver, whereas the VanEck Gold Miners ETF tracks an index of global mining companies. This means the VanEck fund introduces corporate risks and operational leverage that can cause its performance to deviate significantly from the spot price of gold.
Details
The iShares Silver Trust is slightly more affordable with a 0.5% expense ratio compared to the 0.51% charged by the VanEck Gold Miners ETF. A one-basis-point difference in the annual fee may seem negligible, but it reflects the different costs associated with vaulting physical metal versus managing a diversified equity portfolio.
Source
Originally published at www.fool.com.