Which Precious Metals ETF Is the Better Buy: Global X's Silver Miners SIL or iShares' Gold Trust IAU?
SIL delivered 68% returns over one year but faced steeper drawdowns, while IAU's lower volatility and 0.25% expense ratio appeal to conservative investors seeking precious metals exposure.
Overview
While Global X - Silver Miners ETF (NYSEMKT:SIL) provides leveraged exposure to silver through mining stocks, iShares Gold Trust (NYSEMKT:IAU) offers direct exposure to physical gold price movements at a lower cost.
Investors seeking precious metals exposure must choose between holding the physical commodity or the companies that mine it. While both can serve as a portfolio hedge, their performance drivers differ significantly. This comparison examines the difference between a broad basket of silver-producing equities and a trust backed by physical gold bullion.
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.
Source
Originally published at www.fool.com.