Physical Gold or Silver Stocks? A Deep Dive Into IAU and SIL ETFs
The Motley Fool
by newsfeedback@fool.com (Neha Chamaria)February 24, 2026
AI-Generated Deep Dive Summary
The article delves into the differences between two popular ETFs in the precious metals space: the Global X - Silver Miners ETF (SIL) and the iShares Gold Trust (IAU). While both offer exposure to gold and silver, they do so in distinct ways. IAU holds physical gold, providing direct exposure to the metal's price fluctuations, while SIL invests in silver mining companies, offering potential growth through the performance of these businesses. The key factors that set them apart—expense ratios, volatility, fund structure, and risk profiles—are explored in detail to help investors make informed decisions.
The article highlights that IAU has a lower expense ratio compared to SIL, making it more cost-effective for long-term investments. SIL, on the other hand, comes with higher fees due to its focus on mining companies, which adds complexity and potential risks tied to operational performance. Additionally, SIL exhibits higher volatility, as its value is influenced by both silver prices and the financial health of mining firms. This contrasts with IAU, which tracks the price of gold more directly and tends to be more stable in comparison.
The discussion also touches on beta, a measure of market risk relative to the S&P 500, and how it differs between the two ETFs. SIL has a higher beta, indicating greater sensitivity to market movements, while IAU's lower beta suggests it may serve as a stabilizing force during market downturns. Investors are encouraged to consider their risk tolerance, investment goals, and time horizon when choosing between these options.
For those seeking stability and straightforward exposure to gold, IAU is a compelling choice due to its lower costs
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Originally published on The Motley Fool on 2/24/2026