iShares Gold Trust (NYSEMKT:IAU) offers lower ongoing costs and historically lower volatility, while iShares Silver Trust (NYSEMKT:SLV) provides exposure to a more volatile metal that has recently delivered stronger price appreciation.
Precious metals are often viewed as safe haven assets or as hedges against broader market volatility. Unlike mining stocks, which carry operational risks, the iShares Silver Trust and the iShares Gold Trust aim to track the spot price of the metal itself. This comparison looks at how the costs and historical price swings of these two popular metals differ for long-term holders, particularly since silver is often more volatile than gold.
Snapshot (cost & size)
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months.
The expense ratio is a primary differentiator for these commodity trusts. The gold-focused trust is significantly more affordable for long-term investors, charging 0.25% annually. In contrast, the silver trust is twice as expensive for investors to hold, maintaining an expense ratio of 0.5%.
Performance & risk comparison
What’s inside
iShares Gold Trust provides exposure to the daily performance of gold bullion prices by holding physical metal. Its sole position is physical gold, commanding 100% of its portfolio. It is a commodity trust rather than a standard stock-based fund. The trust was launched in 2005. This structure allows gold exposure without logistical storage challenges.
iShares Silver Trust replicates the market price movements of silver bullion. It launched in 2006 and provides direct exposure to silver prices, which often fluctuate more significantly than gold due to industrial demand. Its sole position is physical silver at 100%. Both funds offer metal exposure with stock-like liquidity and will sometimes hold some cash as part of its operations.
Which fund is the better buy?
Investors seeking exposure to the metal rally without the time and expense of buying physical commodities can buy either of these ETFs and gain direct access to their preferred precious metal.
There is good reason to be interested: The two metals have been having one of their best runs in decades. Gold has more than doubled over the past two years as investors have flocked to the yellow metal for its historic inflation-hedging characteristics. Silver has nearly tripled since the start of 2025, partly in tandem with gold and partly due to industrial demand from renewable energy applications.
The iShares Silver Trust ETF has had an exceptional year with a nearly 60% return. Last year, 2025, really was the year for silver, with the trust returning 150% in the calendar year. But of the four years before 2025, two had negative returns for the ETF.
IAU, the iShares trust ETF for gold, also has had a very good year, though with 22.2% returns, it’s lagging the silver trust. Like silver, the gold ETF has had two down years over its past five, tallying negative single-digit returns in 2021 and 2022.
Both funds have also had very impressive long-term returns. Over the 3-, 5-, and 10-year time-frames, the gold fund has returned an annualized 27.9%, 17.7%, and 11.5% compared to its silver siblings’ respective returns of 32.7%, 17.2%, and 10.6%
One thing to keep in mind is that while both IAU and SLV are easier ways to buy physical gold and silver, in the U.S., gains from these funds are taxed as collectibles, which typically means a higher tax rate than for stocks for most investors.
For those looking for precious metals for their portfolio, both these funds are good options. Ultimately, the gold fund appears to be the better buy given the prospect of persistent inflation from the ramifications of the Iran war on energy prices and the potential for world banks to move more away from the U.S. dollar in their reserves, both factors that will keep investor demand for gold higher going forward.
For more guidance on ETF investing, check out the full guide at this link.
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Brendan Coffey 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.
Gold Trust vs Silver Trust: Which Precious Metal ETF Should Win Investor Dollars? was originally published by The Motley Fool
