Key Differences in Cost, Yield, and Sector Focus Between SLVP and GDX

Investors navigating the world of metals ETFs often find themselves at a crossroads, particularly when considering the iShares MSCI Global Silver and Metals Miners ETF (SLVP) and the VanEck Gold Miners ETF (GDX). While both funds provide access to global mining stocks, they have unique profiles that cater to different investment strategies. This article dives deep into the key differences in cost, yield, and sector focus to help investors evaluate their options.

Snapshot: Cost & Size

Understanding the basics of each ETF is essential for making informed investment decisions. Here’s a quick look at some critical metrics:

The cost of investing is often a deciding factor for many investors. SLVP stands out as a more affordable option with a lower expense ratio of 0.39% compared to GDX’s 0.51%. Additionally, for income-focused investors, SLVP offers a notable advantage with a dividend yield of 1.5%, compared to GDX’s modest 0.6%. This difference can accumulate significantly over time, making SLVP an attractive choice for those who prioritize income.

Performance & Risk Comparison

Investors also need to consider performance metrics and the associated risks:

While the overall return on investment is crucial, understanding drawdowns helps gauge volatility. SLVP shows a maximum drawdown of -56.18%, indicating it has been more volatile than GDX, which saw a drawdown of -49.79%. However, it’s worth noting that GDX has provided a more robust growth of $1,000 over five years, reaching $3,246 compared to SLVP’s $2,718.

What’s Inside

Both SLVP and GDX have substantially different compositions that reflect their sector focus:

SLVP, primarily invested in silver and diversified metals, includes top holdings such as:

• Hecla Mining (15.38%)
• Indust Penoles (11.9%)
• Fresnillo Plc (10.94%)

In total, SLVP features about 30 companies, concentrating heavily in the silver space, reflecting its specialized investment approach.

Conversely, GDX holds a more extensive collection of 55 global gold miners. Its largest positions include:

• Agnico Eagle Mines (9.73%)
• Newmont Corp (9.11%)
• Barrick Mining Corp (6.65%)

With nearly $33.5 billion in assets under management (AUM), GDX emphasizes scale, liquidity, and broad exposure across the gold mining sector, making it a more diversified option.

What This Means for Investors

Recent months have seen considerable momentum in precious metals, with January 2026 marking all-time highs for both gold and silver prices. For investors, choosing between SLVP and GDX hinges on the specific metal they wish to gain exposure to.

Investing in GDX

GDX emerges as a solid choice for those looking to invest in gold mining stocks without diving deep into individual stock analyses. With a robust asset base and a diversified mining portfolio, it provides substantial liquidity and ease of access to the gold mining sector. Notably, GDX holds companies like Pan American Silver, which indicates its cross-exposure to silver mining despite focusing predominantly on gold.

Investing in SLVP

Conversely, SLVP appeals to those seeking targeted exposure to silver mining companies. Possessing top positions in major silver producers, SLVP is an excellent option for investors who believe in the potential upside of silver in the marketplace.

Combining Investments

For a balanced approach, investors might want to consider allocating funds to both ETFs. SLVP’s higher dividend yield and lower expense ratio present compelling reasons to explore this fund further. Meanwhile, GDX’s extensive size and diversification offer a safer bet during times of market instability.

Investors’ decisions will ultimately depend on their specific financial goals, risk tolerance, and the metals market outlook. Whether GS or SLVP, understanding these ETFs’ nuances can help investors align their portfolios with their investment strategies.