Which Precious Metals ETF Is the Better Buy: iShares' Gold Trust IAU or Silver Miners SLVP?
Gold offers lower costs and stability, while mining equities deliver higher returns with greater volatility. Which suits your portfolio?
Overview
Comparing iShares Gold Trust (NYSEMKT:IAU) and iShares MSCI Global Silver and Metals Miners ETF (NYSEMKT:SLVP) highlights the significant differences between holding a physical commodity and investing in leveraged mining equities.
Both iShares funds target precious metals but utilize different investment vehicles. The Gold Trust tracks gold bullion directly, offering pure commodity exposure. The Silver and Metals Miners ETF invests in global mining companies, meaning its performance is tied to both silver prices and the operational success of the businesses themselves.
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.