iShares Gold Trust (IAU) charges half the expense ratio of iShares Silver Trust (SLV) and has swung far less through drawdowns, even though silver has posted the stronger recent gains. A Motley Fool comparison of the two precious-metals ETFs says gold still looks like the better buy given prospects for persistent inflation.
The iShares Gold Trust (NYSEMKT:IAU) charges an annual expense ratio of 0.25%, the more affordable of the two commodity trusts. The iShares Silver Trust (NYSEMKT:SLV) is twice as expensive to hold, at 0.5%. Both trusts hold the physical metal directly and track spot prices rather than mining-company shares.
Cost and size favor gold
IAU is also the larger of the two funds, with $59.4 billion in assets under management. SLV holds $27.8 billion. As of July 30, 2026, IAU traded at $77.30 a share. SLV traded at $53.50 over the same span.
Silver's stronger returns come with sharper swings
SLV has returned 59.7% over the trailing 12 months. IAU returned 25.4% over the same span. Yet that edge comes with more volatility. SLV carries a beta of 0.50. IAU's beta is 0.17. SLV also suffered a 52.3% maximum drawdown over the past five years. IAU's five-year maximum drawdown was 26.4%. A $1,000 investment five years ago would have grown to $2,264 in SLV and $2,237 in IAU.
What is driving the rally
IAU, launched in 2005, holds only physical gold, which has more than doubled over the past two years as investors sought its inflation-hedging characteristics. SLV, launched in 2006, tracks silver, which often fluctuates more than gold because of industrial demand. Silver has nearly tripled since the start of 2025, partly alongside gold's rally and partly on demand from renewable-energy applications.
Tax treatment and outlook
Both funds tax gains as collectibles, typically a higher rate than stock gains for most investors. Even so, the gold fund appears to be the better buy given the prospect of persistent inflation tied to the Iran war's effect on energy prices, and the potential for world banks to move further away from the U.S. dollar in their reserve diversification.
Source: Motley Fool
Trading involves risk.
Risk Disclaimer
