iShares Silver Trust delivers stronger returns than Sprott Gold Miners ETF amid differing risk profiles and commodity exposure.
The iShares Silver Trust (SLV) has outperformed the Sprott Gold Miners ETF (SGDM) over the past year, reflecting divergent performance in precious metals investments. SLV tracks physical silver prices, offering direct exposure to the commodity, while SGDM invests in gold mining equities, introducing corporate and operational risks.
Both funds carry identical 0.50% expense ratios but differ in structure and income potential. SLV, launched in 2006, holds 100% of its assets in physical silver, while SGDM, established in 2014, allocates 100% to gold mining stocks, including top holdings like Agnico Eagle Mines and Barrick Gold.
Investors choosing between the two face distinct volatility patterns, as physical metals and mining equities respond differently to market conditions and inflation pressures.