IAU Offers Lower Cost Gold Exposure Than SIL

Core Insights - The Global X - Silver Miners ETF (SIL) and iShares Gold Trust (IAU) differ significantly in asset focus, volatility, and cost, with SIL targeting silver mining stocks and IAU providing direct gold exposure [1][2] Cost and Size Comparison - SIL has an expense ratio of 0.65% and assets under management (AUM) of $6.3 billion, while IAU has a lower expense ratio of 0.25% and AUM of $79.7 billion [3][4] - The one-year return for SIL is 167.4%, compared to 72.9% for IAU, indicating higher short-term performance for SIL [3] Performance and Risk Comparison - Over five years, SIL has a maximum drawdown of -55.63%, while IAU has a slightly lower drawdown of -54.73% [5] - An investment of $1,000 would grow to $2,154 in SIL and $2,598 in IAU over the same period, showing IAU's superior long-term growth [5] Portfolio Composition - IAU is designed to track the price of physical gold, providing a pure-play on gold's spot price without equity risk, and has been operational for 21 years [6] - SIL invests exclusively in silver mining companies, with top holdings including Wheaton Precious Metals Corp, Pan American Silver Corp, and Coeur Mining Inc, which introduces company-specific risks [7] - SIL holds 41 companies, offering some diversification within the silver mining sector but lacks broader diversification [7]