Key Points
SLVP delivered a much higher 1-year return but with far greater drawdowns and volatility than AAAU.
AAAU is notably cheaper and offers lower risk exposure, tracking physical gold rather than equities.
SLVP concentrates on silver miners, while AAAU is a pure gold play with no equity or sector tilts.
The iShares MSCI Global Silver and Metals Miners ETF(NYSEMKT:SLVP) and the Goldman Sachs Physical Gold ETF (NYSEMKT:AAAU) approach precious metals from entirely different angles. While SLVP holds global silver and metals mining equities, AAAU tracks the price of physical gold. SLVP pursues high-growth, high-risk silver miners, whereas AAAU offers low-cost, lower-volatility exposure to gold itself.
For investors weighing pure commodity exposure against a leveraged play on mining stocks, these ETFs provide distinct risk-reward profiles. This comparison highlights those differences to help investors make better decisions.
Snapshot (cost & size)
| Metric | SLVP | AAAU |
|---|---|---|
| Issuer | IShares | Goldman Sachs |
| Expense ratio | 0.39% | 0.18% |
| 1-yr return (as of Mar. 31, 2026) | 136.6% | 49.6% |
| Beta | 0.92 | 0.22 |
| AUM | $982 million | $2.8 billion |
Beta 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.
AAAU stands out for its lower 0.18% expense ratio compared to SLVP’s 0.39%, making it the more affordable option for cost-conscious investors.
Performance & risk comparison
| Metric | SLVP | AAAU |
|---|---|---|
| Max drawdown (5 y) | -56.18% | -21.63% |
| Growth of $1,000 over 5 years | $2,402 | $2,719 |
What's inside
AAAU is a single-asset fund designed to reflect the price of physical gold, with all holdings concentrated in bullion rather than equities or derivatives. The fund, now 7.7 years old, provides direct exposure to gold and does not hold company shares, so traditional sector and holdings breakdowns do not apply. There is no leverage, currency hedge, or ESG quirks.
By contrast, SLVP is an equity ETF focused on silver and metals miners. Its top holdings include Hecla Mining (NYSE:HL), Fresnillo Plc, and First Majestic Silver(NYSE:AG), which means SLVP’s returns are tied not only to silver prices but also to mining company fundamentals and broader equity market movements.
For more guidance on ETF investing, check out the full guide at this link.
What this means for investors
Precious metals like gold and silver are considered a hedge against inflation and economic uncertainty. The choice between the iShares MSCI Global Silver and Metals Miners ETF and the Goldman Sachs Physical Gold ETF comes down to which metal you’re seeking exposure to: gold or silver.
As the name suggests, the Goldman Sachs Physical Gold ETF holds gold bullion in secure vaults, giving investors direct exposure to the price of gold. With AAAU, investors can gain exposure to gold without the hassles of buying and storing physical gold.
The iShares MSCI Global Silver and Metals Miners ETF, on the other hand, is an equity ETF that provides investors with exposure to global silver mining companies. So unlike AAAU, which solely tracks the price of gold, the operations of mining companies and their stock prices can affect SLVP’s value. SLVP, however, pays a dividend too.
After underperforming AAAU for some years, SLVP has gained significant momentum in one year because of silver’s massive outperformance. Unlike gold, which is primarily stored by central banks or used as jewelry, silver has significant industrial uses, including electronics, semiconductors, electric vehicles, and medical tools. Investors looking to invest in precious metals may want to allocate funds to both ETFs for exposure to gold as well as silver.
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
