Investors choosing between SPDR Gold Shares (NYSEMKT:GLD) and iShares Silver Trust (NYSEMKT:SLV) must weigh the lower costs and relative stability of gold against the higher volatility and recent momentum of silver.
Precious metals often serve as a hedge against inflation, currency devaluation, or geopolitical uncertainty. While both funds bypass the logistical hurdles of physical storage by holding bullion in secure vaults, they track different commodities with distinct industrial and monetary drivers. This analysis compares how their costs, historical volatility, and assets under management differ for investors.
Snapshot (cost & size)
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.
The SPDR gold trust is more cost-efficient for long-term holders, featuring an expense ratio of 0.40%. This is lower than the 0.50% fee charged by the iShares silver trust, representing a savings of $1.00 per year for every $1,000 invested.
Performance & risk comparison
What’s inside
SPDR Gold Shares provides exposure to the price of gold bullion by holding physical assets in secure vaults. Its largest positions include Physical Gold at 100.00%. The fund was launched in 2004. It tracks the price of gold after deducting operational expenses and serves as a highly liquid instrument for institutional and retail investors seeking a direct gateway to the gold market without the complexities of physical delivery.
iShares Silver Trust seeks to replicate the market price movements of silver bullion by holding physical metal. Its largest positions include Physical Silver at 100.00%. This trust was launched in 2006. Silver dual role as both a precious and industrial metal often leads to higher price volatility than gold, a characteristic reflected in the fund higher historical beta and more significant historical price swings.
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What investors should know
As previously mentioned, SLV and GLD reflected the market prices of silver and gold, respectively. This means both could serve as a hedge against inflation, and with both precious metal ETFs in a long-term bull market, investors should note that both have also outperformed the S&P 500‘s total return.