Metal exchange-traded funds (ETFs) are investment instruments that give exposure to metals such as gold, silver and copper without requiring investors to hold the physical asset.

Compared with physical bullion, metal ETFs are a low-barrier means to get involved, as the buying and selling can be done through brokerage platforms.

What are metal ETFs?

Metal exchange-traded funds (ETFs) are a way for investors to gain exposure to the price movements of metals such as gold, silver, and copper, without needing to buy or store the physical asset. 

These products trade on stock exchanges and can be bought and sold like shares of a publicly listed company.

In practice, metal ETFs can track a single metal (such as gold or silver) or a broader basket of metals, including industrial and strategic materials. While they are commonly referred to as ‘ETFs’, many of the most popular metal products are, in fact, legally structured as trusts – a distinction that has implications for how they operate and how they may be taxed.

Despite these structural nuances, metal ETFs remain one of the more accessible ways for retail investors to trade metals through a standard brokerage or trading app.

How metal ETFs track prices

Metal ETFs track prices in three main ways, depending on what the fund holds under the hood.

1. Physically backed metal ETFs (Trusts)

Some gold and silver ETFs, such as SPDR Gold Shares (GLD) or iShares Gold Trust (IAU), are legally structured as grantor trusts. These trusts hold physical metal bars in secure vaults, which are located in major financial centres like London or Zurich.

• The ETF component refers to how the product trades: shares can be bought and sold intraday on an exchange.
• The trust component defines the legal structure: the fund holds a fixed quantity of physical metal and doesn’t actively trade or attempt to outperform the market.

When investors buy shares of a physical metal trust, they gain a fractional beneficial interest in the underlying metal held by the trust. The fund’s performance is therefore designed to closely track the spot price of the metal, minus fees and expenses.

2. Futures-based (synthetic) metal ETFs

Some metal ETFs don’t hold physical bullion. Instead, they gain exposure through futures contracts linked to the price of a metal. These funds periodically ‘roll’ their contracts forward to maintain exposure, which can introduce additional costs or tracking differences over time, particularly during periods of market contango or backwardation.

As a result, futures-based metal ETFs may diverge from spot prices, especially over longer holding periods.

3. Equity (mining) metal ETFs

Mining-focused metal ETFs take a different approach altogether. Rather than tracking the price of a metal directly, these funds hold shares of companies involved in mining and production.

Their performance is influenced not only by metal prices, but also by company-specific factors. This means mining ETFs can behave differently from physically backed metal ETFs, even when they focus on the same underlying metal.

ETF vs trusts: Key differences

While they work together, the distinction matters for three specific reasons:

1. Tax treatment (the ‘collectibles’ trap)

Because these are Grantor Trusts, the IRS (and many other tax authorities) views you as the direct owner of the underlying metal.

• Standard ETFs (stocks or bonds): Typically taxed at 15% to 20% for long-term gains.
• Metal trusts (gold or silver): Usually taxed as 'Collectibles'. In the US, this can be as high as 28% for long-term holdings. The trust structure "passes through" the tax status of the physical metal to you.

2. Redemption (physical vs cash)

• Most ETFs: When you sell, you get cash. You can’t ask the fund to send you the gold bars.
• Specific Trusts: Some specialised trusts (like the Sprott Physical Gold Trust or VanEck Merk Gold Trust) actually allow certain investors to 'redeem' their shares for physical bars delivered to their door (though this usually requires a very high minimum investment).

Transparency and audits

A Trust has a ‘Trustee’ (the bank holding the metal) and a 'Sponsor' (the company that created the fund).

• They are required to provide a 'Weight List' or audit.
• If you own a share in a gold Trust, you are legally entitled to a fractional, undivided beneficial interest in a pool of gold bars.

Metal categories investors commonly follow

1. Precious metals

Gold and silver are among the most widely followed metal categories for retail investors. They are prized for their rarity and are often used as stores of value and hedges against economic uncertainty.

Metal ETFs tracking precious metals are typically physically backed or trust-based, allowing investors to follow spot price movements more closely than mining equities.

2. Industrial metals

Industrial metals such as copper, aluminium and zinc are closely tied to global economic activity. Demand for these metals tends to rise during periods of economic expansion and soften when conditions slow.

Copper, in particular, is monitored by market participants as a proxy for industrial health due to its widespread use in construction, electrical wiring and transportation. ETFs tracking industrial metals may gain exposure through futures contracts or mining companies, which can introduce additional layers of price sensitivity beyond the metal itself.

3. Strategic and technology metals

Strategic metals include materials such as lithium, nickel, cobalt and rare earth elements. These metals play a central role in batteries, electric vehicles, renewable energy systems and advanced electronics.

Demand for strategic metals is usually tied to long-term structural trends. ETFs in this space are commonly equity-based, holding shares of companies involved in extraction and processing rather than physical metal.

Examples of popular US-listed metal ETFs

Metal ETFs vs other ways to gain metal exposure

While gold and silver remain top choices among retail investors, the ways investors can trade them range from holding heavy bars in a safe to clicking the ‘buy’ button on a mobile app.

While there are several methods for retail investors to trade metals (such as through physical bullion, futures contracts, or mining company stocks), a popular and easily accessible method is through metal ETFs. ETFs like GLD (gold) or SLV (silver) track the price of the metal. 

Some are ‘physically backed’, meaning the fund actually holds the metal in a vault.

For retail traders, metal ETFs present a convenient means of making on-the-go transactions through a standard brokerage without worrying about storing bars safely. People don't actually own the metal; instead, they own a piece of a trust.

How to trade metal ETFs on the Crypto.com App

On the Crypto.com platform, US-based users can access a variety of US-listed metal ETFs including the examples above, through the following ways:

Step 1

Option A: Go to the ‘Stocks’ tab and directly search by typing the ETF's ticker symbol or a relevant keyword.

Option B: Explore ‘Hedge Against War’ via Trend Watch: This curated feature includes a selection of ETFs and stocks focused on gold and energy.

Option C: Go to ‘Categories’ or ‘Markets’ (navigation varies by app version), find the ‘Commodities’ or ‘Precious Metals’ category and choose your preferred ETF from the list.

Step 2

Once you’ve selected an ETF, you can review its key information such as current price, price history, expense ratio, latest news and more.

Step 3

Choose an order type. Crypto.com offers three order types: 

• Market order, which executes immediately at the current market price.
• Limit order, which executes only at your specified price.
• Recurring buy, which automates your purchases at a set schedule (AKA dollar cost average).

Step 4

Enter your purchase amount and select your preferred funding method.

Step 5

Review your order summary before confirming the purchase.

Your newly purchased ETF shares should appear in your portfolio within 24 hours of the order.

Important Information: This is informational content sponsored by Crypto.com and should not be considered as investment advice. Trading ETFs, stocks and cryptocurrencies carries risks, including price volatility. Past performance may not indicate future results. There is no assurance of future profitability. Consider your risk appetite before trading.

Services, features and benefits referenced may be subject to jurisdictional limitations and eligibility requirements and may change at Crypto.com’s discretion. 

Disclosure: Foris Capital US LLC (“FCUL” or referred to herein as “Crypto.com Stocks”) is a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a Member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). For further information about FCUL, please visit FINRA BrokerCheck.

FCUL is a subsidiary of Crypto.com. FCUL is a separate entity from Crypto.com, Foris DAX, Inc., and other affiliated Foris companies. FCUL does not engage in the sale, transfer or custody of crypto currencies or digital assets. Crypto.com is a separate entity from FCUL and does not engage in the securities business. Customer balances and crypto holdings held and transacted at Crypto.com and other entities outside of FCUL are not covered by SIPC insurance and are separate from securities transactions and holdings at FCUL.