Ride the Gold and Silver Rally: Choose GLD ETF's Steady Climb or SLV's High-Octane Surge | The Motley Fool

2025 has been an exceptional year for gold and silver, as well as for exchange-traded funds (ETFs) that track these two precious metals. iShares Silver Trust ( SLV +2.71%) and SPDR Gold Shares ( GLD +0.11%) both provide access to physical precious metals, but differ in underlying commodities, volatility, and cost structures. SLV is designed to reflect the price of silver, while GLD aims to mirror the price of gold bullion. Both are among the largest and most liquid commodity ETFs, and therefore hugely popular among investors seeking exposure to precious metals without buying physical bullion. But the risk profiles and historical returns of the two ETFs diverge, making them suitable for different types of investors seeking exposure to precious metals. Snapshot (cost & size) Metric SLV GLD Issuer iShares SPDR Expense ratio 0.50% 0.40% 1-yr return (as of Dec. 19, 2025) 126.9% 66.8% Beta 1.39 0.49 AUM $34.1 billion $146.9 billion Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The 1-yr return represents total return over the trailing 12 months. Performance & risk comparison Metric SLV GLD Max drawdown (5 y) (38.79%) (21.03%) Growth of $1,000 over 5 years $2,499 $2,269 What's inside The SPDR Gold Shares is entirely backed by physical gold , with 100% of the fund's portfolio comprising the precious metal. The ETF has been trading for over 21 years and is recognized as the first US-listed ETF backed by a physical asset. There are no sector tilts or quirks; the fund offers pure exposure to gold prices and is among the largest commodity ETFs in the world. iShares Silver Trust, on the other hand, is designed to reflect the price performance of silver and is also 100% concentrated in its target commodity. Like GLD, it does not introduce sector or geographic tilts. Given its inception in 2006, SLV is the world's oldest and largest silver ETF. Both funds are straightforward in their design and provide the easiest way to gain exposure to the prices of precious metals. The difference in the underlying commodity, however, can lead to price swings. For more guidance on ETF investing, check out the full guide at this link . What this means for investors Precious metals have sizzled in 2025. While gold hit all-time highs in October 2025, silver is breaking records even as I write this. Precious metals are considered safe-haven assets and are widely used by investors to hedge their portfolios against uncertainties and inflation, mainly because the values of gold and silver are not tied to a single company or even economy. Geopolitical tensions, falling interest rates (which make precious metals more attractive compared to bonds), and robust buying by central banks worldwide have all contributed to the surge in gold and silver prices in 2025. Demand for gold is largely driven by central banks and large investors, as well as retail buyers from major markets such as India and China for jewelry purposes. Silver, on the other hand,...

Preview: ~500 words