The iShares Silver Trust Delivers Bigger Five Year Gains Than The iShares Gold Trust

iShares Silver Trust (SLV) has returned 98.9% over the past year versus 60.2% for iShares Gold Trust (IAU) as of Dec. 12, 2025, though SLV charges a higher expense ratio (0.50% vs 0.25%) and has roughly $33.4bn AUM versus $68.3bn for IAU. Both funds offer direct, non‑yielding exposure to their respective spot metals (no listed equity holdings), but SLV shows higher volatility and downside risk—five‑year max drawdown of -38.8% versus -21.9%, beta 0.18 vs -0.06—and only a modestly higher five‑year growth of $1,000 ($2,532 vs $2,322). For institutional investors, the lesson is that silver’s greater volatility (and higher fees) has amplified returns in the recent precious‑metals bull market but increases downside risk in a reversal, whereas gold provides a lower‑cost vehicle for long‑term inflation and sovereign‑debt hedging; both have outperformed the S&P 500 over the period.

Analysis

SLV delivered a 98.9% total return over the past year versus IAU’s 60.2% as of Dec. 12, 2025, while charging a higher expense ratio (0.50% for SLV vs. 0.25% for IAU) and holding roughly $33.4 billion AUM compared with IAU’s $68.3 billion. Both ETFs offer direct, non‑yielding exposure to their metals and are reported as 100% real‑estate sector exposure in the classification data, reflecting commodity labeling rather than equity holdings.

Risk metrics show SLV is materially more volatile: five‑year max drawdown of -38.79% versus IAU’s -21.88%, beta 0.18 for SLV vs -0.06 for IAU, and $1,000 invested five years ago grew to $2,532 in SLV versus $2,322 in IAU. This illustrates that silver’s higher volatility has amplified returns in the recent precious‑metals bull market but also increases downside risk in a reversal.

For investors, the tradeoff is clear: SLV has outperformed in the recent cycle but at the cost of higher fees and deeper drawdowns, while IAU presents a lower‑cost, lower‑volatility vehicle for long‑term inflation or sovereign‑debt hedging; both funds have outpaced the S&P 500 over the period, indicating strong metal price drivers are in place.

Key Decisions for Investors

• Consider IAU as the preferred core long‑term precious‑metals hedge due to its lower expense ratio (0.25%), larger AUM and materially lower historical drawdown,
• Use SLV tactically to amplify exposure only if you have high risk tolerance and shorter time horizon; size positions conservatively and plan for the potential for large drawdowns (five‑year max drawdown ~ -38.8%),
• Monitor macro indicators that drive metal prices (inflation readings and sovereign debt concerns) and relative performance between SLV and IAU to time tactical rebalances,
• Factor the 0.25% annual fee differential into multi‑year cost projections and consider switching to IAU or implementing hedges if a long‑term, low‑volatility exposure is the objective