SLV vs GDX: Is a Silver ETF a Better Buy Than a Gold Miner Fund in 2026?

The iShares Silver Trust provides direct exposure to physical silver bullion, while the VanEck Gold Miners ETF invests in companies that extract gold.

The iShares Silver Trust has delivered significantly higher total returns over the trailing 12 months but has historically experienced a deeper maximum drawdown.

Both funds charge comparable expense ratios of approximately 0.5%, providing institutional-grade liquidity for precious metals investors.

Investors choosing between iShares Silver Trust (NYSEMKT:SLV) and VanEck Gold Miners ETF (NYSEMKT:GDX) are deciding between a direct bet on physical silver bullion and an equity-based investment in gold mining companies.

While both funds are popular vehicles for precious metals exposure, they behave differently. The iShares Silver Trust tracks the spot price of physical silver, whereas the VanEck Gold Miners ETF tracks an index of global mining companies. This means the VanEck fund introduces corporate risks and operational leverage that can cause its performance to deviate significantly from the spot price of gold.

The iShares Silver Trust is slightly more affordable with a 0.5% expense ratio compared to the 0.51% charged by the VanEck Gold Miners ETF. A one-basis-point difference in the annual fee may seem negligible, but it reflects the different costs associated with vaulting physical metal versus managing a diversified equity portfolio.

The iShares Silver Trust is a commodity-based fund that holds its assets in physical silver bullion. Its portfolio is concentrated, all dedicated to the shiny metal. The trust tracks the market price movements of the metal rather than equity in mining corporations. It was launched in 2006.

The VanEck Gold Miners ETF tracks the MarketVector Global Gold Miners Index, focusing on the Basic Materials sector. Its largest positions include Newmont Corp (nyse:nem) at 10.5%, Agnico Eagle Mines Ltd (NYSE:AEM) at 10.2%, and Barrick Mining Corp (NYSE:B) at 8%. The fund provides exposure to 57 different companies involved in gold mining. It was launched in 2006.