The Goldman Sachs Physical Gold ETF (AAAU) offers direct gold bullion exposure at a lower cost than the iShares MSCI Global Silver and Metals Miners ETF, according to a comparison of the two funds. The iShares silver miners fund carries significantly higher price volatility, shown by its higher beta and larger maximum drawdown over the past five years. The comparison highlights the trade-off between AAAU’s lower-cost bullion tracking and the silver miners fund’s more volatile, equity-linked exposure.
A comparison of two precious-metals funds weighs the Goldman Sachs Physical Gold ETF against the iShares MSCI Global Silver and Metals Miners ETF, focusing on cost and volatility.
Cost comparison
According to the comparison, the Goldman Sachs Physical Gold ETF provides direct exposure to gold bullion prices at a lower cost than the iShares MSCI Global Silver and Metals Miners ETF.
Volatility and drawdown
The iShares ETF exhibits significantly higher price volatility than the gold bullion fund, the comparison found. This is reflected in two measures:
- A higher beta for the iShares fund
- A larger maximum drawdown for the iShares fund over the last five years
The trade-off
The comparison highlights the trade-off between the two approaches: AAAU’s lower-cost bullion tracking versus the silver miners fund’s more volatile, equity-linked exposure.