Is Gold or Silver the Better Investment Right Now? How GDX Compares to SIL for ETF Investors

While both the VanEck Gold Miners ETF (GDX -0.47%) and the Global X-Silver Miners ETF (SIL -1.09%) track companies in the basic materials sector, they provide exposure to different precious metals.

This comparison examines how the large, gold-centric VanEck fund measures up against the more concentrated silver offering for metals-heavy portfolios.

Snapshot (cost & size)

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.

GDX is the more cost-effective choice, with a lower expense ratio that can help investors save on fees. For income-seeking investors, SIL offers a higher payout — reflecting the different distribution profiles of silver miners versus gold miners.

Performance & risk comparison

What’s inside

GDX focuses exclusively on basic materials, with a portfolio of 65 holdings that track global gold mining firms. Its largest positions include Newmont, Agnico Eagle Mines, and Barrick Mining. This fund was launched in 2006 and has paid $0.63 per share in dividends over the trailing 12 months.

SIL also concentrates 100% of its assets in basic materials, but its strategy targets silver miners instead of gold. Its top holdings include Wheaton Precious Metals, Pan American Silver, and Coeur Mining. It currently holds 42 stocks and has paid $1.02 per share in dividends over the trailing 12 months.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy

Precious metal mining companies offer a way to invest in gold and silver with operational leverage, as their profits can grow faster than the prices of the metals themselves. However, it can also lead to greater volatility, as performance depends on the health and stability of the mining companies themselves.

The difference between gold and silver generally comes down to risk tolerance and long-term goals. Gold tends to be more stable over the long term, offering more consistent growth. This can appeal to investors seeking a safe haven during periods of economic volatility.

Collapse

SIL & GDX: Performance Comparison

Key Financial Metrics

SIL – Global X Funds – Global X Silver Miners ETF

$92.25

–1.09% (–$1.02)

GDX – VanEck ETF Trust – VanEck Gold Miners ETF

$93.69

–0.47% (–$0.45)

52wk Range

$61.80 – $119.24

Dividend & Yield

$1.02 (1.09%)

52wk Range

$67.25 – $117.17

Dividend & Yield

$0.63 (0.67%)

SIL – Global X Funds – Global X Silver Miners ETF

$92.25

–1.09% (–$1.02)

52wk Range

$61.80 – $119.24

Dividend & Yield

$1.02 (1.09%)

GDX – VanEck ETF Trust – VanEck Gold Miners ETF

$93.69

–0.47% (–$0.45)

52wk Range

$67.25 – $117.17

Dividend & Yield

$0.63 (0.67%)

Silver can be more lucrative than gold, partly because it’s often used in various forms of manufacturing — from solar panels to smartphones to automobiles and more. When demand for these products increases, a silver-focused ETF like SIL can benefit from it.

Because silver is more closely tied to the global economy, though, it can also be more volatile. SIL has both a higher beta and deeper max drawdown than GDX, suggesting more severe price fluctuations over the last five years. However, it’s also outperformed GDX in 12-month total returns.

The better buy for you will depend on what you’re looking to achieve with an ETF. Investors willing to take on more risk for the potential to earn higher returns may prefer SIL, while those seeking long-term stability and an inflation hedge might be better off with GDX.