GLD Offers Smoother Ride Than SLV Over Five Years

Core Insights - The iShares Silver Trust (SLV) and SPDR Gold Shares (GLD) exhibit significant differences in performance, volatility, and cost, with SLV showing a substantial increase over the past year while GLD provides a more stable investment option with lower risk and fees [1][2]. Cost and Size Comparison - SLV has an expense ratio of 0.50%, while GLD has a slightly lower expense ratio of 0.40% [3][4]. - As of January 30, 2026, SLV's one-year return is 162.7%, compared to GLD's 72.4% [3]. - SLV has assets under management (AUM) of $51.5 billion, whereas GLD has a significantly larger AUM of $174.1 billion [3]. Performance and Risk Comparison - Over the past five years, SLV experienced a maximum drawdown of -38.79%, while GLD's maximum drawdown was -21.03% [5]. - An investment of $1,000 in SLV would have grown to $3,019 over five years, compared to $2,578 for GLD [5]. Fund Structure and Exposure - GLD is a physically backed gold fund that provides direct exposure to gold bullion, classified under Basic Materials, and does not hold equities or distribute dividends [6]. - SLV is structured to reflect the price of silver and is classified as 100% Real Estate, although it primarily tracks silver bullion without generating yield [7]. Market Behavior and Investor Suitability - Both GLD and SLV reflect the historical volatility of gold and silver, respectively, with gold being less plentiful and often used for wealth preservation, while silver has various industrial applications [8][9]. - Recent market conditions, including falling interest rates and geopolitical tensions, have driven interest in precious metals, leading to increased volatility, particularly in SLV, which saw a significant drop of over 30% in one day compared to GLD's 10% drop [11][12]. - SLV may appeal to risk-tolerant investors seeking higher potential returns, while GLD is more suitable for risk-averse investors [12].