Comparative Analysis of Silver Miners ETF and Gold Trust
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy WPM?
Source: Fool
- Cost and Volatility Comparison: The Global X Silver Miners ETF (SIL) has an expense ratio of 0.65%, while the iShares Gold Trust (IAU) charges only 0.25%, making IAU more appealing to cost-conscious investors; additionally, SIL exhibits higher volatility with a beta of 1.42, indicating significant price swings compared to the S&P 500.
- Return and Risk Assessment: As of January 30, 2026, SIL's one-year return stands at 167.4%, compared to IAU's 72.9%, suggesting higher potential returns for SIL, but its maximum drawdown of -55.63% highlights greater risk, necessitating careful consideration of risk versus reward by investors.
- Portfolio Composition: SIL exclusively invests in silver mining companies, holding 41 firms including Wheaton Precious Metals and Pan American Silver, which makes its performance susceptible to individual company factors, whereas IAU directly tracks gold prices, offering more stable investment returns.
- Market Liquidity and Investment Strategy: IAU boasts $79.7 billion in assets under management, representing a highly liquid way to invest in gold, while SIL's $6.3 billion in assets indicates lower liquidity, prompting investors to consider their investment goals and risk tolerance when making choices.
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Analyst Views on WPM
Wall Street analysts forecast WPM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WPM is 137.91 USD with a low forecast of 118.00 USD and a high forecast of 160.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
8 Buy
1 Hold
0 Sell
Strong Buy
Current: 130.900
Low
118.00
Averages
137.91
High
160.00
Current: 130.900
Low
118.00
Averages
137.91
High
160.00
About WPM
Wheaton Precious Metals Corp. is a Canada-based precious metals streaming company. The Company, through strategic streaming agreements, partners with mining companies to secure a portion of their future precious metal production. The Company has approximately 35 streaming agreements. It also has approximately five royalty agreements. Its portfolio includes a diverse mix of gold, silver, palladium, platinum and cobalt streams from 18 operating mines and 28 development projects. Its operating portfolio includes Antamina, Blackwater, Constancia, Cozamin, Los Filos, Marmato, Neves-Corvo, Penasquito, Salobo, San Dimas, Stillwater & East Boulder, Sudbury, Voisey's Bay, and Zinkgruvan. The Company has also entered into a definitive agreement to acquire the Spring Valley Project located in Nevada, United States of America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Outstanding Returns: Wheaton Precious Metals has delivered a staggering 4,153% return since its IPO in 2005, significantly outperforming gold's 1,012% rise during the same period, indicating the robustness and long-term growth potential of its business model.
- Strong Profitability: With only 44 full-time employees, the company generated a gross profit of $35 million per employee last quarter, demonstrating exceptional operational efficiency and the ability to achieve substantial profits without engaging in mining activities.
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Comparative Analysis of Silver Miners ETF and Gold Trust
- Cost and Volatility Comparison: The Global X Silver Miners ETF (SIL) has an expense ratio of 0.65%, while the iShares Gold Trust (IAU) charges only 0.25%, making IAU more appealing to cost-conscious investors; additionally, SIL exhibits higher volatility with a beta of 1.42, indicating significant price swings compared to the S&P 500.
- Return and Risk Assessment: As of January 30, 2026, SIL's one-year return stands at 167.4%, compared to IAU's 72.9%, suggesting higher potential returns for SIL, but its maximum drawdown of -55.63% highlights greater risk, necessitating careful consideration of risk versus reward by investors.
- Portfolio Composition: SIL exclusively invests in silver mining companies, holding 41 firms including Wheaton Precious Metals and Pan American Silver, which makes its performance susceptible to individual company factors, whereas IAU directly tracks gold prices, offering more stable investment returns.
- Market Liquidity and Investment Strategy: IAU boasts $79.7 billion in assets under management, representing a highly liquid way to invest in gold, while SIL's $6.3 billion in assets indicates lower liquidity, prompting investors to consider their investment goals and risk tolerance when making choices.
See More
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Market Trends: The market is experiencing a pullback, creating opportunities for contrarian investors as many individual stocks are down significantly, suggesting a potential for selective buying strategies.
Investment Strategies: Jeff Clark emphasizes the importance of identifying oversold stocks and sectors, particularly in software and grocery chains, while advising caution against popular trades like gold mining stocks.
Bitcoin Sentiment: Current bearish sentiment around Bitcoin contrasts sharply with previous bullish trends, with Clark suggesting that today's prices may be more attractive for investment compared to past highs.
Contrarian Opportunities: Clark highlights that emotional market conditions often present unique investment opportunities, particularly in sectors that are currently undervalued or overlooked.
See More
Wheaton Precious Metals Stock Rises Amid Silver Price Volatility
- Strong Stock Performance: As of early February, Wheaton Precious Metals (WPM) shares have risen 11.4% year-to-date and returned 98% over the past 12 months, indicating robust performance amid silver price volatility and attracting investor interest.
- Valuation Insights: Despite a P/E ratio of 59, significantly higher than the S&P 500's 29.6, Wheaton's business model allows it to purchase future metal outputs at an 82% discount, suggesting its actual valuation may be more favorable than it appears, enhancing investment appeal.
- Financing Deal Advantages: The agreement with Waterton Copper enables Wheaton to acquire hundreds of thousands of ounces of silver for $300 million in upfront financing at an 82% discount, providing the company with a significant edge in future metal returns.
- PEG Ratio Trends: Currently, Wheaton's PEG ratio is below 1, indicating that its earnings growth is sufficient to justify its stock price, suggesting that despite a seemingly high P/E ratio, the company still holds growth potential, which attracts more investor interest.
See More
Wheaton Precious Metals Appoints New CEO
- Leadership Change: Wheaton Precious Metals announced that current President Haytham Hodaly will succeed Randy Smallwood as CEO effective March 31, marking a significant leadership transition as Smallwood, who co-founded the company in 2004, moves to non-executive Chair.
- Experienced Successor: Hodaly, who joined Wheaton in 2012 as Senior VP of Corporate Development and became President in 2025, brings nearly 30 years of mining industry experience, which is expected to provide fresh strategic insights and industry knowledge to the company.
- Board Structure Adjustment: George Brack will concurrently transition to Lead Independent Director while serving as Chair since 2022 and as a director since 2009, which may influence the company's governance and decision-making processes.
- Market Reaction Anticipation: This leadership change could impact investor confidence, particularly against the backdrop of the company's ongoing pursuit of high-margin silver and gold streaming profits, with the market closely monitoring the new CEO's strategic direction and execution capabilities.
See More
Spot Silver Continues Decline, Currently Down 6% at $67 per Ounce
- Market Performance: Silver prices have experienced a decline, dropping 6% to $67 per ounce.
- Trend Analysis: The recent downturn in silver prices indicates a potential shift in market dynamics.
See More
Wheaton Precious Metals Continues to Outperform Gold
- Outstanding Returns: Wheaton Precious Metals has delivered a staggering 4,153% return since its IPO in 2005, significantly outperforming gold's 1,012% rise during the same period, indicating the robustness and long-term growth potential of its business model.
- Strong Profitability: With only 44 full-time employees, the company generated a gross profit of $35 million per employee last quarter, demonstrating exceptional operational efficiency and the ability to achieve substantial profits without engaging in mining activities.
- Unique Business Model: Wheaton operates by providing financing in exchange for discounted future mineral output rights, recently signing a $300 million deal with Hemlo Mining for 10.13% of its gold output, showcasing its innovation and competitive edge in the industry.
- Market Protection Mechanism: Even in the event of a gold price downturn, the company can maintain its profit margins through discounts of up to 80%, ensuring profitability in volatile markets and appealing to investors looking for gold investment opportunities.
See More
Comparative Analysis of Silver Miners ETF and Gold Trust
- Cost and Volatility Comparison: The Global X Silver Miners ETF (SIL) has an expense ratio of 0.65%, while the iShares Gold Trust (IAU) charges only 0.25%, making IAU more appealing to cost-conscious investors; additionally, SIL exhibits higher volatility with a beta of 1.42, indicating significant price swings compared to the S&P 500.
- Return and Risk Assessment: As of January 30, 2026, SIL's one-year return stands at 167.4%, compared to IAU's 72.9%, suggesting higher potential returns for SIL, but its maximum drawdown of -55.63% highlights greater risk, necessitating careful consideration of risk versus reward by investors.
- Portfolio Composition: SIL exclusively invests in silver mining companies, holding 41 firms including Wheaton Precious Metals and Pan American Silver, which makes its performance susceptible to individual company factors, whereas IAU directly tracks gold prices, offering more stable investment returns.
- Market Liquidity and Investment Strategy: IAU boasts $79.7 billion in assets under management, representing a highly liquid way to invest in gold, while SIL's $6.3 billion in assets indicates lower liquidity, prompting investors to consider their investment goals and risk tolerance when making choices.
See More
