Silver has always occupied an unusual place in an investment portfolio. It behaves partly like a precious metal and partly like an industrial commodity. During periods of monetary uncertainty, investors may buy it as a store of value. At the same time, silver demand is influenced by solar energy, electronics, electric vehicles, data centres, medical equipment and other industrial applications. That combination creates opportunity—but also considerable volatility. The global silver market remained in deficit for a fifth consecutive year in 2025. Global demand exceeded supply, while Indian bar and coin demand increased by 33%. Mine production reached approximately 846.6 million ounces and recycling increased to 197.6 million ounces. These supply-demand conditions helped silver prices reach record levels, but they also produced sharp corrections and regional liquidity disruptions. This is where a silver ETF becomes useful. Nippon India Silver ETF is one of the earliest and largest dedicated silver ETFs in India. It was launched in February 2022 and seeks to generate returns in line with physical silver prices in India, before expenses and subject to tracking error. The scheme invests in physical silver and permitted silver-related instruments. Investors can purchase units through the stock exchange, generally beginning with one unit. Its primary advantage is scale. Strength The main strength is liquidity supported by category-leading scale and wide investor participation. For an ETF investor, liquidity matters because it can reduce the bid-ask spread and make it easier to enter or exit near fair value. Nippon’s strong position in precious-metal ETF volumes is therefore more relevant than simply being the largest fund. Risk The expense ratio is not the lowest among the ETFs in this comparison. Its returns have also trailed the physical-silver benchmark, as would be expected after costs and tracking effects. Large AUM does not eliminate the possibility of the traded price moving above or below iNAV during periods of unusually strong demand. ICICI Prudential Silver ETF is an open-ended scheme designed to replicate or track the domestic price of silver. It was launched in January 2022, placing it among the earlier entrants in the Indian silver ETF category. Strength The combination of large AUM and a 0.40% reported expense ratio is attractive. A large asset base can support efficient operations and market-making, while a competitive TER reduces the recurring drag on long-term returns. Risk An attractive TER does not guarantee the lowest tracking difference. Investors must also evaluate: Daily turnover Bid-ask spread Market price relative to iNAV Actual tracking difference Availability of units near fair value HDFC Silver ETF was launched in September 2022 and seeks to track the performance of physical silver in domestic prices. The scheme invests predominantly in silver bullion of 0.999 fineness. HDFC describes it as a way to access silver without the storage and quality-verification issues associated with physical metal. Strength The ETF benefits from a large AMC, meaningful AUM and a predominantly physical-silver portfolio. For investors who already use HDFC Mutual Fund products or are comfortable with its passive offerings, this can simplify portfolio administration. Risk The 0.50% TER is higher than the disclosed expense ratios of Tata, Kotak, DSP and Mirae Asset Silver ETFs. Over a long holding period, a difference of 0.15–0.20 percentage points can compound into a noticeable return gap—assuming other factors such as tracking efficiency and transaction costs are similar. Tata Silver ETF aims to track the domestic price of physical silver and has quickly developed a meaningful scale. Strength Its biggest strength is the competitive expense ratio. A 0.33% TER is meaningfully lower than several larger peers. If tracking quality and market liquidity remain satisfactory, this lower cost can improve long-term alignment with the underlying silver price. Risk Tata Silver ETF does not have as long an operational record as the earliest entrants. Its exchange liquidity must also be assessed at the time of investment. A low TER can be offset by a wide bid-ask spread, especially for an investor making frequent purchases or trading large quantities. SBI Silver ETF was launched on July 3, 2024. Despite being newer than several peers, it accumulated AUM of approximately ₹5,741.01 crore by June 30, 2026. Strength SBI Silver ETF has achieved substantial scale in a relatively short operating period. The SBI brand, distribution reach and large retail-investor ecosystem may support further participation and trading activity. Risk The ETF’s one-year tracking difference of approximately –3.98% is important. This gap is not explained solely by the 0.41% TER. Cash holdings, operational costs, valuation timing and market conditions can also affect realised tracking. The relatively short history also means investors have less evidence across different silver-market cycles. Kotak Silver ETF was launched in December 2022 and seeks to track domestic physical-silver prices. Strength Kotak offers an attractive combination of: Low TER Adequate AUM High physical-silver allocation Competitive tracking error Multiple authorised participants This balance is more valuable than leading on only one metric. Risk Its liquidity may still be lower than that of Nippon India Silver ETF. Investors should not assume that a ₹3,000-crore-plus AUM guarantees a tight spread throughout the trading day. Axis Silver ETF was launched in September 2022 to track domestic physical-silver prices. As of June 30, 2026, the ETF had AUM of ₹1,860.75 crore. It held 98.01% in physical silver and 1.99% in debt, cash and current assets. Its expense ratio was 0.42% in July 2026, while tracking error was approximately 0.95%. Its NSE symbol was changed from AXISILVER to SILVERAXIS with effect from July 3, 2026. Strength Axis Silver ETF provides adequate scale, a large AMC platform and a portfolio closely aligned with physical silver. It may appeal to investors already using Axis Mutual Fund products or its passive investment ecosystem. Risk Its tracking error is higher than the disclosed figures for Kotak and DSP. While a single tracking-error figure should not determine the entire selection, persistent relative underperformance would reduce its attractiveness. UTI Silver ETF was launched in April 2023 and seeks to generate returns in line with domestic physical-silver prices, subject to tracking error. Strength UTI is one of India’s established asset-management institutions and offers a straightforward silver ETF structure. The fund may suit investors who prefer to consolidate their mutual fund and ETF holdings with UTI. Risk The reported expense ratio is among the highest in this comparison. UTI also offers less scale than Nippon, ICICI, HDFC, SBI, Tata and Kotak. This may result in lower exchange liquidity or wider spreads during certain market conditions. In October 2025, UTI temporarily restricted fresh lump-sum investment in its Silver ETF Fund of Fund amid a domestic shortage of physical silver and a significant local-market premium. That episode highlights the supply and valuation pressures that can arise across the silver ETF ecosystem during stressed periods. DSP Silver ETF was launched in August 2022 and offers exposure to domestic silver prices. As of the latest accessible disclosure, it held 99.8% in silver and only 0.2% in cash and equivalent assets. Its tracking error was 0.66%, TER was 0.40% and AUM was approximately ₹1,428.77 crore. Strength DSP has one of the highest disclosed silver allocations in this comparison. Lower cash drag can improve alignment with the underlying metal, provided transaction costs and portfolio-management efficiency remain controlled. The combination of a 0.40% TER and 0.66% tracking error is also competitive. Risk AUM and likely trading depth remain lower than those of the category leaders. DSP itself positions the fund primarily for experienced investors with an established core portfolio and suggests limiting total commodity exposure to approximately 5–10% of the portfolio. Mirae Asset Silver ETF was launched in June 2023 and tracks the domestic price of physical silver. The scheme’s permitted allocation is 95–100% in silver, with up to 5% in eligible money-market or short-term instruments. The March 31, 2026 factsheet reported AUM of approximately ₹930.42 crore and a TER of 0.34%. Strength The 0.34% TER is highly competitive. Mirae Asset also has meaningful experience managing passive and international ETF products, which may appeal to investors familiar with its broader platform. Risk The ETF has the smallest cited AUM among the ten funds in this comparison. Lower AUM does not necessarily mean poor quality, but it can contribute to: Lower daily turnover Wider bid-ask spreads Greater reliance on market makers More difficult execution for large orders 1. Tracking difference Tracking difference measures the difference between the ETF’s return and the return of its benchmark over a period. For example: Silver benchmark return: 20% ETF return: 18.8% Tracking difference: –1.2% 2. Tracking error Tracking error measures how consistently the ETF follows its benchmark. A lower tracking error generally indicates that the return gap is more stable. A fund with high tracking error may deviate unpredictably from physical-silver returns. Do not confuse the two terms: Tracking difference: How much return was lost or gained relative to the benchmark Tracking error: How volatile or inconsistent that difference was Ideally, an ETF should have both a small negative tracking difference and low tracking error. 3. Bid-ask spread The bid is the highest price a buyer is offering. The ask is the lowest price a seller is willing to accept. Suppose an ETF has: iNAV: ₹200 Best bid: ₹198 Best ask: ₹202 The ₹4 spread equals 2% of iNAV. An investor buying at ₹202 and immediately selling at ₹198 would lose approximately 2%, even if silver prices did not move. This transaction cost is far larger than the annual TER difference between most silver ETFs. 4. Premium or discount to iNAV The ETF’s exchange price can differ from its indicative net asset value. Premium: Market price is above iNAV Discount: Market price is below iNAV In October 2025, domestic silver shortages reportedly caused local premiums of up to 10%, disrupted silver ETF pricing and led some fund houses to restrict fresh investments in their Silver ETF FoFs. This is not merely a theoretical risk. 5. Assets under management Higher AUM may indicate: Greater investor acceptance Better operating scale More market-maker interest Potentially better liquidity But AUM alone does not guarantee efficient trading. An ETF can have high AUM but limited daily exchange volume if many investors hold units without trading. The best silver ETF in India is not necessarily the fund with the highest historical return. Nippon India Silver ETF stands out for category-leading scale and liquidity. ICICI Prudential offers a compelling combination of size and cost. Tata, Kotak and Mirae Asset are attractive on expense ratio. DSP offers high physical-silver exposure and competitive tracking data. SBI has built significant scale quickly but requires monitoring of tracking difference.Top 10 Best Silver ETF in India
1. Nippon India Silver ETF
2. ICICI Prudential Silver ETF
3. HDFC Silver ETF
4. Tata Silver ETF
5. SBI Silver ETF
6. Kotak Silver ETF
7. Axis Silver ETF
8. UTI Silver ETF
9. DSP Silver ETF
10. Mirae Asset Silver ETF
Factors to Consider Before Investing
Conclusion
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Best Silver ETF in India 2026 | Trackk
2026-07-31 · 10 min read
Sector - Finance
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