Understanding the Divergence Between Gold and Silver Miner ETFs
By John Nada·Feb 14, 2026·4 min read
A detailed comparison of the Global X Silver Miners ETF and VanEck Gold Miners ETF reveals critical differences in performance, costs, and investment strategy.
Investors looking at precious metals have two prominent options: the Global X - Silver Miners ETF (SIL) and the VanEck Gold Miners ETF (GDX). While both ETFs provide exposure to mining companies, they differ significantly in focus, cost, and potential returns. SIL, centered on silver, has shown a higher one-year return but comes with increased volatility, while GDX, dedicated to gold, offers lower costs and a more diversified portfolio.
SIL's recent performance has been impressive, with a one-year return of 167.2% compared to GDX's 136.8%. This notable difference in performance indicates that SIL has successfully capitalized on the recent bullish trends in the silver market, appealing to investors seeking rapid gains. However, this comes with a trade-off, as SIL has also experienced a maximum drawdown of 55.63% over the past five years, compared to GDX's 46.52%. Such volatility can be a double-edged sword; while it provides opportunities for high returns, it also poses risks that may discourage more conservative investors.
The expense ratio for GDX stands at 0.51%, making it more affordable than SIL's 0.65%. This cost difference can accumulate significantly over time, especially for investors looking to hold these ETFs for the long term. However, SIL's higher dividend yield of 1.0% adds to its appeal, albeit marginally when compared to GDX's 0.6%. For income-focused investors, the slightly better yield from SIL may influence their decision, even if the difference is modest.
Both ETFs have distinct beta values, indicating different levels of volatility relative to the S&P 500, which can influence investor decisions based on risk tolerance. SIL's beta of 0.71 suggests it is less volatile than the broader market, but still carries a higher level of risk compared to GDX's beta of 0.55. This difference in beta reflects the varying nature of the underlying assets in each ETF and can help investors align their choices with their overall investment strategy and risk appetite.
GDX boasts a larger asset base of $30.5 billion and a more extensive history with 19.7 years of operation, providing it with deep liquidity. Its portfolio consists of 55 holdings, including major players like Agnico Eagle Mines Ltd (9.25%) and Newmont Corp (8.88%). This diversified approach allows GDX to spread risk across various companies within the gold mining sector, reducing the impact of poor performance by any single entity. Conversely, SIL focuses on 39 holdings, with a significant concentration in a few companies, such as Wheaton Precious Metals Corp (21.80%). This concentration can lead to heightened volatility for investors who prefer silver-specific exposure, as the performance of SIL is more closely tied to the fortunes of its top holdings.
The dynamics around precious metals are noteworthy, especially as they serve as a hedge against inflation and often show little correlation with equity markets. Both SIL and GDX provide investors targeted access to mining companies, but their approaches diverge by metal and portfolio construction. While neither ETF provides direct exposure to gold and silver prices, they typically move in tandem with the underlying metal markets. This correlation is crucial for investors looking to leverage the benefits of precious metals within their portfolios.
For investors, understanding the nuances between SIL and GDX can guide strategic allocation decisions. SIL may appeal to those looking for higher returns in the silver market, especially in a rising commodity price environment. Investors who are bullish on silver's prospects may find SIL's concentrated exposure beneficial, despite the associated risks.
On the other hand, GDX's stability and lower costs make it a strong contender for those prioritizing diversification. The broader asset base and history of GDX can instill confidence in risk-averse investors who may prefer a more balanced approach to precious metals investing. The choice ultimately depends on individual investment goals and market outlooks, emphasizing the importance of thorough analysis in precious metals investment strategies.
As the precious metals market continues to evolve, the performance of these ETFs could reflect broader economic trends, including inflationary pressures and shifts in investor sentiment. For instance, should inflationary concerns intensify, both gold and silver could see increased demand as safe-haven assets. Savvy investors will keep an eye on these dynamics to optimize their portfolios accordingly. Understanding the specific attributes of SIL and GDX not only aids in making informed investment decisions but also highlights the importance of aligning investment choices with personal financial goals and market forecasts.