Precious Metals ETFs: IAU Has Lower Costs, But SLV Has Delivered Greater Returns

Core Insights - The iShares Silver Trust (SLV) has higher fees and greater volatility compared to the iShares Gold Trust (IAU), but it has shown stronger recent returns [1][2] - IAU is characterized by lower costs and a larger asset pool, making it appealing for cost-conscious investors [1][4] Cost & Size Comparison - SLV has an expense ratio of 0.50%, while IAU has a lower expense ratio of 0.25% [3][4] - As of February 6, 2026, SLV's one-year return is 138.9%, compared to IAU's 73.0% [3] - SLV has assets under management (AUM) of $47.3 billion, whereas IAU has a larger AUM of $78.0 billion [3] Performance & Risk Analysis - Over a five-year period, a $1,000 investment in SLV would grow to $2,764, while the same investment in IAU would grow to $2,672 [5] - SLV provides targeted access to silver, while IAU offers pure-play exposure to gold [5][6] - Both funds do not disclose individual holdings as they hold physical metals, and they are designed for straightforward exposure to the underlying metal prices [6] Investment Implications - Owning a precious metals ETF can diversify a portfolio and serve as a hedge against inflation, with SLV and IAU being two respected options in this category [7]