Finance.Yahoo.com reported on July 3, 2026, that the iShares Silver Trust ETF has surpassed the Global X Silver Miners ETF across key performance metrics. Over a trailing five-year period, SLV delivered a 21.4% total return, outpacing SILJ's performance. The physically-backed ETF also currently provides a higher distribution yield at 0.58%. This performance differential highlights a growing divergence between direct metal exposure and mining equity strategies in the silver market.
Context — why this matters now
The relative outperformance of physical silver over silver miners is a reversal of earlier trends. In the 2020-2021 bull market, SILJ outperformed SLV, gaining over 150% versus SLV's 80% rise from March 2020 to February 2021. The current five-year lead for SLV coincides with a period of suppressed global industrial demand and elevated interest rates. Real yields on 10-year Treasury Inflation-Protected Securities remain above 1.8%, historically a headwind for non-yielding assets like bullion. The trigger for the widening gap is a two-fold catalyst. Elevated operational costs for miners have squeezed margins, while SLV's structure has benefited from consistent, albeit modest, investor demand for physical metal as a portfolio diversifier, particularly following its inclusion in more defined-contribution retirement plan options.
Data — what the numbers show
The iShares Silver Trust holds $16.2 billion in assets under management, dwarfing SILJ's $1.1 billion. Over the trailing five-year period to June 30, 2026, SLV's total return reached 21.4%. This compares to a 4.2% gain for the Global X Silver Miners ETF over the same horizon. Performance diverged sharply in 2025 when SLV returned 8.1% while SILJ declined 6.3%. The current distribution yield for SLV is 0.58%, stemming from securities lending revenue. The Global X fund yields 0.39%. A direct fee comparison shows SLV's expense ratio at 0.50% versus SILJ's 0.65%. This 15-basis-point cost advantage compounds over time. The SPDR Gold Shares ETF, the largest precious metals fund, returned 32.1% over the same five years, outperforming both silver-focused products.
| Metric | iShares Silver Trust (SLV) | Global X Silver Miners ETF (SILJ) |
|---|
| 5-Year Total Return | 21.4% | 4.2% |
| 30-Day Yield | 0.58% | 0.39% |
| Expense Ratio | 0.50% | 0.65% |
| Assets Under Management | $16.2B | $1.1B |
Analysis — what it means for markets / sectors / tickers
This performance split creates distinct second-order effects. Pure-play silver miners like Pan American Silver and Hecla Mining, both top holdings in SILJ, face direct selling pressure from ETF outflows, potentially widening the discount of their share prices to net asset value. In contrast, vault operators and logistics firms servicing physically-backed ETFs, such as Brinks, see stable, fee-based revenue streams. The cost pressure highlights a key limitation for SILJ: its returns are a leveraged play on silver prices, but that use works both ways and includes company-specific risks like labor disputes and permitting delays, which SLV avoids. Institutional flow data from recent months shows net inflows into SLV exceeding $450 million, while SILJ has seen minor outflows. Large asset allocators are positioning for direct commodity exposure over equity risk within the silver complex, a trend visible across other commodity sectors like energy.
Outlook — what to watch next
The next major catalyst for both funds is the Federal Reserve's policy decision on July 30, 2026. A dovish shift could weaken the U.S. dollar and boost silver prices, benefiting both ETFs, though SLV would capture the move more directly. A key level for silver futures is the $32.50 per ounce resistance level; a sustained break above could trigger fresh momentum buying for SLV. For SILJ, investors should monitor the Philadelphia Gold and Silver Index's 200-day moving average; a breakout above this trendline could signal a reversal for mining equities. The next significant industrial demand data from China's photovoltaic sector, due in late August 2026, will be critical. Sustained growth in solar panel production directly supports silver's industrial demand thesis.
Frequently Asked Questions
What is the difference between SLV and a silver mining ETF?
The iShares Silver Trust holds physical silver bullion in vaults. Its price tracks the spot price of silver minus management fees. A silver mining ETF like SILJ holds shares of companies that mine silver. Its performance is tied to the profitability and stock performance of those companies, which is influenced by operational costs, management decisions, and broader equity market sentiment, not just silver prices. This introduces additional layers of risk and potential return divergence.
Is SLV's yield from physical silver?
No, SLV does not generate yield from the silver metal itself, as bullion produces no income. The fund's reported yield, currently 0.58%, is generated primarily through securities lending. The trustee lends a portion of the fund's physical silver bars to authorized participants for a fee, generating revenue that is distributed to shareholders. This practice carries minimal risk due to stringent collateral requirements but is a distinct source of return separate from price appreciation.
How does SLV's performance compare to holding physical silver coins?
For most investors, SLV provides a more cost-efficient and liquid exposure than buying physical coins. The ETF avoids premiums of 5-15% often charged on retail silver coins and bars. It also eliminates storage and insurance costs. However, SLV represents a financial claim on silver, not direct possession. In a scenario of extreme financial system stress, physical possession provides a unique security that an ETF cannot, though this is a tail-risk consideration for most portfolios.
Bottom Line
Direct silver exposure via SLV has provided superior risk-adjusted returns over mining equities for the past five years, driven by lower costs and isolation from mining sector headwinds.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
