Two major precious metals exchange-traded funds have demonstrated markedly different performance trajectories in 2025, as heightened geopolitical tensions and economic uncertainty have driven broad investor interest in physical commodities. The iShares Silver Trust (SLV) has significantly outpaced the Goldman Sachs Physical Gold ETF (AAAU) with one-year returns of 137.63% compared to 73.1%, reflecting the outsized price movements characteristic of silver relative to gold during periods of market volatility.
While SLV's superior returns may attract performance-focused investors, cost considerations present a contrasting argument for AAAU. The Goldman Sachs Physical Gold ETF carries an expense ratio of 0.18%, substantially lower than SLV's 0.50%, a differential that compounds meaningfully over extended holding periods and can significantly impact long-term wealth accumulation.
Investors considering exposure to precious metals should weigh return potential against both cost efficiency and risk tolerance, particularly given the sector's demonstrated volatility. Most notably, silver prices experienced a 27% single-day decline in January 2025, underscoring the substantial price swings that characterize the white metals market and the importance of appropriate position sizing within a diversified portfolio.