Top Silver ETF by AUM
Silver has stolen the spotlight in the commodities world, driven by strong industrial demand, global economic uncertainty and surging prices.
Like gold, silver is increasingly seen not just as a hedge against inflation and currency volatility but as a strategic asset class in diversified portfolios. Data from Ace MF shows Indian silver exchange-traded funds (ETFs) reported spectacular gains with one-year returns of more than 270 percent and three-year gains near 70 percent across most funds underscoring bullion’s powerful move.
The silver ETF ecosystem has grown rapidly, attracting inflows as investors seek regulated, liquid exposure to rising prices without the hassles of owning physical metal. A wide array of ETFs now lets you participate in silver’s upside via your demat account with transparency and cost efficiency.
Top silver ETFs by performance and size
According to the latest AUM and performance data, Nippon India Silver ETF leads the pack with assets of nearly Rs 28,944-crore and a one-year return of 272 percent . ICICI Prudential Silver ETF follows with Rs 14,828-crore AUM and a 274 percent gain over one year.
Other large funds such as HDFC Silver ETF, SBI Silver ETF and Kotak Silver ETF also delivered robust results, with one-year returns clustering around the 270-plus mark. Notably, Tata Silver ETF reported the highest year-to-date absolute performance at 708 percent , reflecting heightened momentum in silver prices. Lesser-sized offerings from DSP, Axis and UTI also posted similar stellar gains, illustrating how silver’s rally has lifted nearly the entire ETF category.
Why silver ETFs are gaining traction
Silver’s dual identity as both a precious and industrial metal has boosted its appeal. Strong demand from solar panel manufacturing, electronics and other tech sectors, coupled with safe-haven buying during uncertain times, has underpinned prices.
Unlike physical silver, ETFs eliminate concerns about storage, purity and safety, and can be traded like stocks on exchanges. This ease of access has helped propel total AUM in combined gold and silver ETFs beyond ₹1 lakh crore, establishing them as mainstream investment vehicles.
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According to market watchers, the expanding investor base for precious metal ETFs signals a shift toward passive, regulated instruments that offer transparency along with bullion exposure.
Silver ETF Taxation: What investors should know
Taxation can materially affect net returns from silver ETFs. In India, silver ETFs are treated as listed securities for tax purposes. If held for more than 12 months, gains qualify as long-term capital gains and are taxed at a flat 12.5 percent on the amount exceeding the basic exemption, without indexation benefits. Selling within 12 months triggers short-term capital gains, which are taxed at the investor’s slab rate.
For comparison, physical silver typically attracts long-term capital gains tax at 20 percent with indexation if held for over three years, though digital silver and ETFs streamline holding periods and tax treatment.
Silver ETFs have been standout performers, reflecting strong price action and investor enthusiasm in 2025–26. They offer a cost-efficient, liquid way to access silver’s upside without physical handling. However, like all commodity-linked assets, they can be volatile and are best used as part of a diversified portfolio aligned with your risk appetite and investment horizon. The commodity exposure should be 10-15 percent of your portfolio.