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News  ›  The Motley Fool

Precious Metals Plays: GDX Offers Broader Exposure and Less Volatility Than SLVP

The Motley Fool Logo The Motley Fool By Sarah Sidlow
Precious Metals Plays: GDX Offers Broader Exposure and Less Volatility Than SLVP

VanEck Gold Miners ETF (GDX) and iShares MSCI Global Silver and Metals Miners ETF (SLVP) both offer precious metals exposure but differ significantly. GDX provides broader gold mining exposure with $27 billion in assets, lower volatility (beta 0.87), and stronger 5-year returns ($2,555 vs $2,208 on $1,000 invested). SLVP focuses on silver and diversified metals with smaller assets ($816.5 million) but delivered higher 1-year returns (158.6% vs 132.9%). For average investors seeking stability and long-term performance, GDX is recommended.

Insights
OXY   neutral

Despite being down 16% YTD, Buffett maintains a position, indicating long-term potential


GDX   positive

GDX is favorably positioned with significantly larger AUM ($27B), lower volatility (beta 0.87), broader diversification across 55 holdings, superior 5-year returns, and is explicitly recommended for average investors seeking stability and long-term performance.