If you're looking for 2025's most extreme macro trades, forget crypto for a moment. Junior gold and silver mining ETFs quietly dominated performance tables this year with triple-digit returns that tell a fascinating story about investor psychology and risk appetite.
The Performance Numbers Are Eye-Popping
Funds tracking junior miners topped ETF performance charts in 2025. The VanEck Junior Gold Miners ETF (GDXJ) surged 167%. The Sprott Junior Gold Miners ETF (SGDJ) climbed 138%. The Amplify Junior Silver Miners ETF (SILJ) gained 165%. And the iShares MSCI Global Silver and Metals Miners ETF (SLVP) jumped almost 182%.
These returns crushed most equity sectors. But here's the thing: this wasn't simply a bet on higher gold and silver prices. It was something much more complex and considerably riskier.
More Than Just Metal Prices
Junior miner ETFs function differently than bullion ETFs, which tend to accumulate capital steadily during uncertain times. Instead, junior miners act like leveraged macro instruments, bundling together geopolitical stress, inflation worries, currency devaluation fears, and skepticism about central banks into a single volatile equity package. When market anxiety rises, these funds don't just climb gradually. They explode higher. With beta factors approaching one, they're exceptionally sensitive to volatility.
That dynamic played out clearly in 2025. Spot gold and silver hit record levels as wars continued, inflation remained persistent, and global rate cuts prompted fresh questions about fiat currencies. Central banks responded by purchasing physical gold at historically elevated levels. ETF investors took a different path, chasing risk through mining stocks.
Operating Leverage Works Both Ways
Junior miners amplify macro trends through their business structure. When metal prices rise, their revenues increase while costs often lag behind, creating substantial operating leverage. That same leverage works brutally in reverse during downturns, which explains why these ETFs are typically used tactically rather than as core portfolio holdings.
Silver-focused funds stood out even more dramatically. Products like SLVP and SILJ benefited from silver's unique dual identity as both a monetary hedge and an industrial resource linked to energy transition and technology demand. This hybrid character gave silver miners an additional edge compared to gold-only competitors.
The Downside Appears Just As Quickly
The risks inherent in this leverage became painfully obvious late in the year. The ProShares UltraShort Silver ETF (ZSL), which delivers twice the inverse daily performance of silver futures, jumped roughly 20% in a single session on Monday after losing approximately 100% for the year. This sharp reversal highlighted how rapidly sentiment can shift in silver markets.
The movement served as a stark reminder that while silver miner ETFs can dramatically outperform during bull markets or inflationary periods, they're equally sensitive to short-term price swings and sudden changes in market positioning.
What This Means Looking Forward
For advisors and investors thinking about 2026, the takeaway isn't that junior miner ETFs represent safe investment options. They absolutely don't. Instead, they've evolved into some of the market's clearest barometers of macro risk appetite. During stable periods, they tend to fade into the background. When markets get chaotic, they make headlines.
After a year like 2025, the question isn't whether these ETFs can move dramatically. We know they can. The real question is whether investors are prepared for how violently they can swing when the macro narrative shifts direction. These are precision instruments for expressing macro views, not buy-and-hold investments for the faint of heart.