Which ETF is Better for Retail Investors: SPDR Gold Shares (GLD) or iShares Silver Trust (SLV)?

Core Insights - The article compares two prominent ETFs: SPDR Gold Shares (GLD) and iShares Silver Trust (SLV), highlighting their cost structures, performance, and risk profiles [1][2][7]. Cost and Size Comparison - SPDR Gold Shares (GLD) has a lower expense ratio of 0.40% compared to iShares Silver Trust (SLV) at 0.50% [3]. - As of November 14, 2025, GLD has assets under management (AUM) of $141.4 billion, significantly larger than SLV's AUM of $26.3 billion [3]. - Neither fund offers a dividend yield, making cost differences the primary factor for ongoing expenses [3]. Performance and Risk Metrics - Over the past five years, SLV experienced a maximum drawdown of 38.79%, while GLD had a lower maximum drawdown of 21.03% [4]. - An investment of $1,000 in SLV would have grown to $1,997 over five years, whereas the same investment in GLD would have grown to $2,122 [4]. Fund Composition - SPDR Gold Shares is a single-asset fund backed entirely by physical gold, with a 21-year track record and 100% classification in precious metals [5]. - iShares Silver Trust also provides direct exposure to physical silver, classified as 100% precious metals, with no underlying company holdings [6]. Investment Appeal - Both ETFs are popular due to their focus on gold and silver, which are sought-after precious metals [7]. - Gold is traditionally viewed as a store of value, with about 50% of its use in jewelry and significant applications in medical, dental, and electronics manufacturing [8]. - Silver, while also used in jewelry and coinage, has notable industrial applications, including in solar panels and electronics [9]. Investor Considerations - Conservative investors may prefer gold for its price stability, while those willing to take on more risk might opt for silver [10].