Table of Contents
New Delhi: Silver Exchange Traded Funds (ETFs) have been gaining significant traction, outperforming gold ETFs in returns over the past year, according to a report by ICRA Analytics. Silver ETFs delivered returns of up to 32.49 per cent in the last year, surpassing the 28.07 per cent returns offered by gold ETFs.
Silver ETF AUM
The rising demand for silver is evident in the growth of Silver ETF Assets under Management (AUM), which jumped over four times to Rs 12,331 crore in October 2024 from Rs 2,844.76 crore a year ago. This growth reflects a substantial increase in silver sales, not just in physical form but also through ETFs, which offer a convenient and transparent way to invest.
Number Of Investors
The number of investors in silver ETFs has also soared, with folios rising by 215 per cent to 4.47 lakh in October 2024, compared to 1.42 lakh last year. Net inflows into these funds grew by 24 per cent year-on-year to Rs 643.10 crore in October.
Silver ETFs provide advantages over physical silver, such as avoiding storage issues and additional costs like GST. They also offer better liquidity, allowing investors to trade units easily on exchanges.
Silver ETFs vs Gold ETFs
According to a data from ICRA Analytics, in terms of returns, silver ETFs have outperformed gold ETFs across various time periods. Over the past six months, silver ETFs delivered returns of 20.25 per cent compared to 10.29 per cent for gold ETFs. Similarly, in the last three months, silver ETFs returned 16.02 per cent, while gold ETFs stood at 14.29 per cent.
Related News |
Silver Prices Hit Lifetime High of Over Rs 97,000; Expert Suggests How Investors Should Ride the Rally
Top Performing Silver ETFs
Among the top-performing silver ETFs, HDFC Silver ETF led the way with a one-year return of 33 per cent. Other strong performers included Aditya Birla Sun Life Silver ETF, DSP Silver ETF, and ICICI Prudential Silver ETF, all delivering returns of over 32 per cent.
Why Is Silver Demand Expected To Remain In Focus?
The demand for silver is expected to remain robust due to its increasing use in electronics and green technologies. Geopolitical tensions and inflationary concerns may also push more investors toward silver as a safe-haven asset. Additionally, anticipated interest rate cuts by the US Federal Reserve could further boost silver prices.
Related News |
Bitcoin Soars To New Heights, Surpasses $81,000 Amid Trump’s Victory, Up Over 90% In 2024