GDX vs. SIL: The Pros and Cons of Gold and Silver Miner ETFs
The Motley Fool
by newsfeedback@fool.com (Jake Lerch)February 14, 2026
AI-Generated Deep Dive Summary
The article delves into the differences between two popular precious metals mining exchange-traded funds (ETFs): the Global X Silver Miners ETF (SIL) and the VanEck Gold Miners ETF (GDX). Both ETFs provide investors with exposure to the mining sector, but they differ significantly in their focus, cost structure, performance, and risk profiles. Understanding these distinctions is crucial for investors looking to allocate funds to precious metals through ETFs.
The key difference between SIL and GDX lies in their metal focus: SIL is concentrated on silver miners, while GDX focuses on gold miners. SIL has seen higher returns and drawdowns recently, reflecting the volatility associated with silver's performance compared to gold. On the other hand, GDX offers a lower expense ratio and a more diversified portfolio of gold mining companies, which can reduce overall risk. These differences in focus and construction mean that each ETF serves different purposes in a portfolio.
Investors should consider their investment goals when choosing between SIL and GDX. SIL may appeal to those seeking higher growth potential with a silver-centric approach, while GDX is ideal for those looking for stability, lower costs, and broader diversification across gold mining companies. The article emphasizes the importance of evaluating factors like expense ratios, beta (a measure of volatility relative to the S&P 500), and historical performance when selecting an ETF.
For readers interested in finance and investing, this comparison highlights the significance of carefully assessing ETFs based on their underlying holdings, cost structure, and risk levels. By understanding these factors, investors can make informed decisions about how to incorporate precious metals exposure into their portfolios, aligning with their financial goals and tolerance for risk. This makes the article a valuable resource for anyone looking to optimize their investment strategy in the precious metals sector.
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Originally published on The Motley Fool on 2/14/2026