Silver is one such asset class that is being talked about the most. It has delivered the highest return of nearly 150% in 2025 among precious metals, which is twice the return delivered by gold, i.e. 75%.
benefits from its dual feature of being a precious metal and an industrial metal. In 2026, gold prices remained volatile due to the US-Iran war and dollar strengthening, but silver benefited from rising industrial demand across electronics, solar, and EVs.
One of the most popular ways to invest in this metal is through .
What are silver ETFs?
Silver ETFs are the exchange-traded securities that track the price of silver in the domestic market. They are traded like a stock in the market and can be easily bought and sold using a demat and trading account.
Fluctuations in the price of silver directly affect the NAV of the fund and the actual returns. These funds offer a convenient way to invest in silver without worrying about purity or storage issues, and investors can start with as little as ₹10.
How to measure Silver ETF’s performance?
Tracking error is a key metric to evaluate the performance of ETFs. Tracking error shows how closely an ETF follows the actual movement of silver prices. A lower tracking error means the ETF is mirroring silver prices closely. A higher tracking error would mean there’s a higher deviation between the ETF and actual silver prices.
Several factors affect tracking error. One major reason is fund expenses such as management fees, transaction costs, and other operational charges, which reduce overall returns.
Another factor is cash holdings. ETFs often keep some cash to manage redemptions or fresh inflows, which means not all the money stays invested in silver at all times. This can create a difference in returns. Hence, ETFs with lower expenses and better cash management generally have a lower tracking error.
Where to find the tracking error? You can check the tracking error of respective silver ETFs on their fund factsheet or on the AMFI website.
Top 5 Silver ETFs by Lowest Tracking Error
| Fund Name | Tracking Error | AUM ( ₹ Cr) | Volume (Lakh) | 3-Yr Returns |
| ICICI Prudential Silver ETF | 0.58 % | 14,715 | 25.03 | 52.48% |
| Kotak Silver ETF | 0.63% | 3,513 | 56.43 | 52.33% |
| Nippon India Silver ETF | 0.80% | 31,126 | 235.57 | 52.04% |
| HDFC Silver ETF | 0.91% | 7,649 | 24.76 | 52.69% |
| Axis Silver ETF | 0.91% | 2,001 | 8.85 | 52.25% |
Data as of May 22, 2026 (Volume as on May 25, 2026), Source: AMFI, Value Research, NSE
Factors to consider while selecting silver ETFs
Apart from tracking error here’s a look at three other factors you can consider before investing in silver ETFs.
AUM
AUM (Assets Under Management) represents the total value of all the investments held by the fund on behalf of the investors. Higher AUM indicates that more investors are interested in this ETF.
Traded Volume
The volume represents the total number of shares traded on an exchange over a specific period. A higher trading volume generally indicates better liquidity and provides ease of selling.
3-Year Returns
As the silver ETFs have gained traction in the last 3-years, checking the past return helps in analyzing the consistency of the fund.
Beyond this, reviewing the expense ratio, portfolio allocation of a fund and broader silver price trend in the market would help make an informed decision.
Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.