The Motley Fool weighs the iShares Silver Trust against the Sprott Gold Miners ETF as commodities extend a multi-year rally. Silver’s fund posted a bigger recent gain, but its writers hand the nod to the gold-miner fund on taxes and dividends.
The iShares Silver Trust (SLV) has outrun the Sprott Gold Miners ETF (SGDM) over the past year, yet The Motley Fool names SGDM the fund to buy, citing its better tax treatment and dividend income. The comparison pits a physically backed silver vehicle against a basket of gold-mining equities as both metals ride a historic run.
Silver’s fund leads on recent returns
SLV, which holds its entire portfolio in silver bullion and launched in 2006, returned nearly 59% over the year to July 8, 2026. That beat SGDM, whose one-year return came in at 40.10% over the same span. The silver trust also carried far more scale, with $28.6 billion in assets against SGDM’s $581.7 million.
Silver itself has powered that gap. The metal rose 148% in 2025, driven by safe-haven buying and industrial demand. It traded around $59.24 per ounce on July 9, 2026, recovering after a June slide dragged it below $60 for the first time in months.
Why the gold-miner fund gets the nod
The case for SGDM rests less on price and more on structure. The fund holds 39 positions and usually invests at least 90% of its net assets in its benchmark index, with its largest stakes in Agnico Eagle Mines, Barrick Mining, and Newmont. Miner stocks correlate closely with the price of gold, and their fixed production costs let profits swell disproportionately as bullion climbs.
Taxes tilt the balance too. In the U.S., gains from a fund like SLV are taxed as collectibles, typically a higher rate than for stocks. Over 10 years the two funds nearly match, with SGDM returning just under 16% annualized versus just over 16% for SLV. The Motley Fool concludes that the better taxation profile and dividend income give SGDM the nod as the fund to buy.
Longer-term, silver’s backers point to tight supply. The Silver Institute forecasts a deficit of roughly 67 million ounces in 2026, and J.P. Morgan Global Research expects prices to average $81 per ounce this year, more than double the 2025 average.
Sources: The Motley Fool, eciks.org
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