SLV vs. SGDM: More Direct Silver Exposure or Investing in Gold Mining?
The Motley Fool
by newsfeedback@fool.com (Adé Hennis)February 15, 2026
AI-Generated Deep Dive Summary
The article compares two exchange-traded funds (ETFs) that offer access to precious metals: the iShares Silver Trust (SLV) and the Sprott Gold Miners ETF (SGDM). While SLV provides direct exposure to silver by tracking its physical price, SGDM focuses on gold mining stocks through a concentrated basket of equities. This comparison highlights key differences in cost, performance, volatility, and portfolio fit.
SLV is designed for investors seeking straightforward silver exposure, holding physical silver and replicating its price movements. It offers liquidity and simplicity, making it a reliable choice for those looking to hedge against inflation or diversify with a tangible asset. On the other hand, SGDM provides leveraged exposure to gold mining companies, which can amplify returns during market upturns but also increases risk due to equity volatility.
The article notes that SLV has historically lower beta compared to SGDM, indicating less correlation with broader market movements. While SLV’s one-year return reflects silver’s price fluctuations, SGDM’s performance is tied to the financial health and stock prices of mining companies. Cost differences are another factor, with expense ratios varying between the two ETFs.
For investors, this comparison matters as it underscores the importance of aligning investment goals with the right asset class. Direct silver exposure via SLV may appeal to those prioritizing stability, while SGDM could attract risk-tolerant investors seeking higher potential returns through mining sector leverage. Understanding these distinctions helps readers make informed decisions tailored to their financial strategies.
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Originally published on The Motley Fool on 2/15/2026