Silver ETFs are a recent class of assets that were introduced in India as late as 2021-22. Like gold ETFs they track the price of silver in the market.
SEBI approved the introduction of Silver ETFs in November 2021 making it one of the newest asset classes in India. (Picture Credit: Freepik)
From auspicious occasions to industrial uses, silver spans a big gamut of utilities and emotional values in India. Silver has also been valued as an instrument of investment down generations.
But silver is a precious metal and like gold, it brings headaches for the owner in terms of safekeeping. Silver ETFs (Exchange Traded Funds) are regarded as a better alternative to possessing physical silver.
Market regulator SEBI approved the launch of Silver ETFs in November 2021.
Let’s see how this new asset class has performed with respect to returns.
ICICI Pru Silver ETF
ICICI Pru Silver ETF has offered returns of 13.91% over a period of 6 months, 9.63% in 1 year and 47.84% over a period of two years.
Accordingly, a sum of Rs 10,000 invested 6 months ago would have fetched a return of 11,390.60. Over a period of 1 and 2 years, it would have given Rs 10,962.80 and Rs 14,784.10 respectively.
These returns are with respect to the NAV on July 25, 2024.
HDFC Silver ETF
Over a period of 6 months, this fund has provided a return of 14.56%, over 1 year 8.61%. But the return soars to 53.61% since inception ie, September 2, 2022.
Accordingly, if one had invested Rs 10,000 in HDFC Silver ETF 6 months ago, he/she would have got Rs Rs 11,455.60. The same amount invested 1 year ago would have fetched a total of Rs 10,860.80. But it would have got Rs 15,361.10 if invested on September 22, 2022.
This takes into account the NAV on July 25.
Axis Silver ETF
The returns this fund provided for 6 months and 1 year are 14.72% and 10.04%. Rs 10,000 invested 6 months ago would have fetched Rs 11,472.40 and that invested 1 year ago would have generated Rs 11,004.20.
If invested at inception (September 20, 2022), return at the rate of 45.42% would have been generated – Rs 10,000 would have turned into Rs 14,541.90.
This calculation is based on the NAV of July 25.
Nippon India Silver ETF
This fund has given returns of 13.80% over a period of 6 months, 9.46% over 1 year and 46.37% over a 2 year period.
Accordingly, if one invested Rs 10,000 in it, it would have generated Rs 11,379.70 in 6 months, Rs 10945.80 in 1 year and Rs 14636.80 in 2 years.
This calculation is based on the NAV of July 25.
There are 17 silver ETFs in India. These are typically used for diversification of portfolio.