SLV vs GLD: Which Precious Metals ETF Suits Your Portfolio?

Performance speaks volumes

If you’ve been eyeing precious metals ETF investments, the numbers tell an interesting story. Over the past year through early December 2025, SLV (iShares Silver Trust) surged 83.4%, substantially outpacing GLD (SPDR Gold Shares) at 57.9%. However, this outperformance comes with a caveat—silver’s volatility is considerably higher, with a 5-year beta of 1.39 compared to gold’s modest 0.46.

Looking at the bigger picture, a $1,000 investment made five years ago would have grown to $2,352 in SLV versus $2,241 in GLD. Yet the journey matters as much as the destination. SLV’s maximum drawdown reached -39.33% over that span, while GLD’s hit -22.00%—a meaningful difference if you’re sensitive to market swings.

What’s actually inside these precious metals ETF holdings?

The structural difference here is straightforward but important. GLD holds physical gold bullion and nothing else—just pure, unadulterated exposure to gold prices. Operating for 21 years, the fund contains zero stocks or bonds, making it truly a single-commodity play.

SLV operates identically in concept, offering direct silver spot price exposure through physical metal holdings. Neither fund generates dividend income, so you’re banking entirely on price appreciation. This simplicity appeals to investors wanting commodity access without the complications of mining stocks or leveraged positions.

The cost question: where fees matter

GLD charges a 0.40% expense ratio while SLV demands 0.50% annually. Over long holding periods, that 0.10% difference compounds. For context, GLD manages a substantially larger pool—$141.8 billion in assets under management versus SLV’s $29.8 billion—which partly explains the fee advantage.

If you’re planning to hold for decades, the lower fee structure of GLD becomes increasingly relevant. Neither fund pays distributions, so costs directly impact net returns.

Why precious metals in your portfolio?

Precious metals ETFs serve a specific purpose: diversification and inflation hedging. While stocks historically outperform metals over extended timeframes, metals often move differently from equities during market stress, providing portfolio ballast.

The choice between these two precious metals ETF options ultimately hinges on your risk tolerance and timeframe. Prefer stability and lower costs? GLD’s characteristics align with conservative, long-term holders. Seeking higher volatility and recent strong performance? SLV’s track record appeals to more aggressive allocators. Both eliminate the hassle of storing physical metals while delivering direct commodity price exposure.