What ETF Has Gold and Silver?

Before selecting an ETF to invest in precious metals, it is important to first assess your financial goals. Assessing expense ratios, top holdings and assets under management for each ETF can help you decide on the most suitable option for your portfolio.

Gold and silver ETFs have become incredibly popular with investors looking to hedge against inflation; however, each asset class comes with unique risks that should be carefully considered when making investment decisions.

iShares Silver Trust ETF (SLV)

The iShares Silver Trust ETF is an ETF designed to mirror the price performance of silver. Launched in April 2006 and listed on New York Stock Exchange Arca, it provides investors with exposure to this market without incurring storage or other issues.

Precious metals ETFs provide an effective way to diversify your portfolio with exposure to these ancient currencies and stores of value, from bullion and derivatives, through ETNs that track them. When selecting an ETF that invests in precious metals, it’s important to look at its underlying assets, fund performance, expense ratio, liquidity as well as any prospectus provided either from its sponsor website or through SEC EDGAR database – not forgetting creation and redemption processes which should also be carefully evaluated.

Market Vectors Gold Miners ETF (GDX)

GDX gives investors access to a diverse portfolio of gold mining companies. Gold is widely considered an inflation-proof asset and provides a safety net during times of financial upheaval, making gold mining companies often net winners when its price appreciates as their profits rise with it.

This ETF tracks the NYSE Arca Gold Miners Index and is market capitalization weighted, with quarterly rebalancing. Top holdings of this fund include Newmont Corp. and Canada-listed shares of Franco-Nevada Corp.

GDX’s high portfolio turnover can lead to higher expenses and reduced after-tax returns, and its 1.9% trailing dividend yield has caused it to only pay out once annually. Therefore, this ETF may be better suited for investors bullish on gold but fear inflation or potential financial crises in the future.

Market Vectors Gold Miners ETF (GDXJ)

Gold has long been seen as an invaluable commodity among investors looking to protect themselves against inflation and geopolitical unrest. Investors can access it indirectly via exchange-traded funds (ETFs) which own companies mining the precious metal.

Market Vectors Junior Gold Miners ETF (GDXJ) is one of these funds. It tracks the Solactive Gold Miners Custom Factors Index and invests at least 80% of its assets in global junior gold mining stocks.

Wheaton Precious Metals Corp. and Franco-Nevada Corp. are two top holdings. Both companies specialize in royalty and streaming for gold production and distribution, respectively.

GDXJ’s holdings exhibit strong correlations to gold prices, since gold miners’ profitability depends on its current market price. When gold prices increase, usually so does their stocks; but this correlation isn’t always accurate: when interest rates spike up during certain times of the year or other factors like rising costs cause gold mining stocks to move opposite ways to gold itself.

Market Vectors Silver Miners ETF (SLV)

Market Vectors Silver Miners ETF (SLV) provides exposure to companies involved in mining and refining precious metals, with low expense ratios that make this fund an appealing option for those looking to expand beyond gold-only metal holdings.

This fund tracks the LBMA Silver Price index and holds physical silver bullion in London vaults. This is one of the least costly ways to gain direct exposure to silver; with an expense ratio that’s lower than most gold ETFs – making it a better option for those avoiding physical bullion fees.

Precious metal mining stocks face operational risks that could impact their value, such as labor shortages or strikes that disrupt production, as well as exposure to price volatility due to metal production costs. Furthermore, ETFs offering precious metal mining investments often contain counterparty risk; this risk applies equally across the board whether backed by physical bullion or not.


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