GDX vs. SIL: The Pros and Cons of Gold and Silver Miner ETFs

The Global X – Silver Miners ETF (SIL +5.15%) and the VanEck Gold Miners ETF (GDX +5.76%) both offer concentrated mining exposure, but SIL is silver-centric with a higher recent return and drawdown, while GDX is gold-focused, lower cost, and more diversified.

Both SIL and GDX give investors targeted access to mining companies, but their approaches diverge by metal and portfolio construction. This comparison unpacks how their cost, performance, risk, and underlying holdings shape their appeal for those considering a precious metals allocation.

Snapshot (Cost & Size)

Beta measures price volatility relative to the S&P 500; beta is calculated from five-year weekly returns. The one-year return represents total return over the trailing 12 months.

GDX is more affordable with a 0.51% expense ratio compared to SIL’s 0.65%, and while SIL offers a slightly higher dividend yield, the difference is modest at 1.0% versus 0.6%.

Performance & Risk Comparison

What’s Inside

GDX exclusively tracks companies in the global gold mining industry, spreading its assets across 55 holdings. Its largest positions include Agnico Eagle Mines Ltd (AEM +5.55%) at 9.25%, Newmont Corp (NEM +6.55%) at 8.88%, and Barrick Mining Corp (B +5.58%) at 6.79%. GDX’s 19.7-year track record and $30.5 billion in assets under management point to deep liquidity and an established presence in the gold mining space.

SIL, in contrast, limits its focus to the silver mining sector, with 39 holdings. Its top allocations are Wheaton Precious Metals Corp (WPM +4.82%) at 21.80%, Pan American Silver Corp (PAAS +6.21%) at 11.67%, and Coeur Mining Inc (CDE +7.16%) at 7.88%. While both funds are 100% basic materials, SIL’s heavier weighting in its top names signals a more concentrated portfolio, potentially increasing volatility for investors seeking silver-specific exposure.

For more guidance on ETF investing, check out the full guide at this link.

What This Means For Investors

Smart investors know that portfolio diversification is a good idea. Precious metals provide an excellent way to achieve diversification. They have little to no correlation to equity markets. Moreover, they can serve as a hedge against inflation. While the Global X – Silver Miners ETF (SIL) and the VanEck Gold Miners ETF (GDX) don’t provide direct exposure to gold and silver prices, they do tend to move in tandem. Here’s what investors need to know.

First off, it’s important to note that the price of gold or silver miners can — and does — deviate from the price of the underlying metal. For example, over the last ten years, GDX has delivered a total return of 435%, while SPDR Gold Shares (GLD) — which tracks the spot price of gold — has advanced by 289%. Both returns are impressive, but GDX has delivered significant outperformance.

The same is not the case with silver. iShares Silver Trust (SLV) has increased by 375% over the last decade, but SIL has increased by 350%. In the case of silver, the fund which tracks the spot price of the metal (SIL) has outperformed the silver miners fund — albeit only slightly.

Investors may also want to consider the diversification of the funds themselves. GDX has 55 holdings, with no stock comprising more than 10% of overall holdings. SIL, on the other hand, has only 39 positions, with Wheaton Precious Metals making up more than 21% of its holdings.

In summary, both GDX and SIL provide diversification for investors. Even though both funds hold shares of mining companies rather than direct precious metals, they still offer a high correlation to the price of gold and silver, respectively. GDX has more holdings, a lower expense ratio, and has outperformed its underlying asset more than SIL. However, SIL offers a higher dividend yield, and silver has outperformed gold in recent years.