Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBrendan Coffey, The Motley FoolSat, June 6, 2026 at 4:11 PM GMT+2 4 min readPrecious metal shave been one of the market’s hottest sectors the past year. The iShares Silver Trust (NYSEMKT:SLV) provides direct exposure to silver prices, whereas Sprott Gold Miners ETF (NYSEMKT:SGDM) targets the equity of companies mining gold, leading to different risk-return profiles and income potential.Investors looking for precious metals exposure can choose between owning the physical commodity and the companies that extract it. While both can serve as inflation hedges, investing in the metals directly often exhibits volatility patterns different from those of metal mining stocks, which are influenced by corporate balance sheets and operational costs.Snapshot (cost & size)MetricSGDMSLVIssuerSprottiSharesExpense ratio0.50%0.50%1-yr return (as of June 3, 2026)57.00%110.60%Dividend yield1.00%NoneBeta0.500.45Assets under management (AUM)$634.6 million$35.9 billionBeta 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. Dividend yield is the trailing-12-month distribution yield.Both funds have the same expense ratios of 0.50%.Performance & risk comparisonMetricSGDMSLVMax drawdown (5 yr)(45.00%)(42.50%)Growth of $1,000 over 5 years (total return)$2,350$2,568What's insideThe iShares Silver Trust aims to track the performance of physical silver prices, providing direct exposure to the metal without buying physical silver or investing in companies that mine it. Launched in 2006, the trust allocates 100% of its assets to the basic materials sector through its physical silver holdings. Because it owns a commodity rather than equities, it cannot pay dividends.The Sprott Gold Miners ETF tracks an index of U.S. and Canada-listed gold mining companies. Launched in 2014, the fund holds 39 securities and similarly maintains 100% exposure to the basic materials sector. Its largest holdings include 11.48% of its portfolio in Agnico Eagle Mines (TSX:AEM.TO), about 8.5% in Barrick Mining (TSX:ABX.TO), and just over 8% in Newmont (NYSE:NEM). The fund has a trailing-12-month dividend of $0.73 per share.Which fund is the better buy?It’s hard to argue that the 100% past-year return of the iShares Silver Trust isn’t impressive. But that doesn’t mean it’s the right fund to be buying now.Historically, gold outperforms silver as a metal because of gold’s traditional position as the most desirable precious metal. That doesn’t mean silver still can’t outpace its glittering cousin in the near future, especially since industrial demand is behind much of its strength. Gold’s performance, meanwhile, is driven more by hedging against inflation and currency weakness.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info