Gold ETFs delivered strong monthly returns in August 2026, with Zerodha Gold ETF leading at 8.86%, followed closely by UTI Gold ETF at 8.85% and Quantum Gold ETF at 8.84%. According to reports from Mint, the performance gap between the top-performing funds was extremely narrow, with just 0.04 percentage points separating the highest and fifth-highest return. Silver ETFs also posted impressive gains, with DSP Silver ETF leading at 8.59%, followed by Zerodha Silver ETF at 8.54%. The silver category showed even tighter competition, with the gap between top and bottom fund at just 0.09 percentage points. The strong precious metals performance came amid challenging market conditions, with India's fiscal deficit reaching ₹3.08 lakh crore by end-June, up from 17.9% a year earlier, and July's CPI at 4.45%, staying above RBI's target for the second consecutive month.
The annual performance data reveals a stark contrast in precious metals ETF rankings. UTI Gold ETF topped the one-year leaderboard with 51.15% returns, followed by LIC MF Gold ETF at 50.81% and Quantum Gold ETF at 50.76%. As reported by Mint, only two of the top five gold ETFs in August, Quantum Gold ETF and ABSL Gold ETF, also feature among the top five performers over the last one year. Silver ETFs demonstrated even more dramatic performance, with SBI Silver ETF delivering a staggering 98.10% return over the past year, followed by Tata Silver ETF at 98.08% and Axis Silver ETF at 98.03%. Only two of the top five silver ETFs in August—ICICI Pru Silver ETF and DSP Silver ETF—appear in the one-year top five funds.
The performance gap between gold and silver ETFs showed significant variation across different time periods. According to Mint data, UTI Gold ETF gave 51.15% returns compared to SBI Silver ETF's 98.10% over the last year, meaning silver ETFs delivered nearly twice the return of gold. However, the picture was much closer in August 2026, with Zerodha Gold ETF giving 8.86% returns compared to DSP Silver ETF's 8.59%, representing a difference of only 0.27 percentage points. This demonstrates how short-term rankings can differ substantially from longer-term performance patterns across both precious metals categories. The contrasting performance occurred despite challenging market conditions, including Industrial output growth slowing to 6.7% in July from 7.3% in June and foreign institutional investors holding a record low of 17% in Nifty 500.
The data highlights the importance of evaluating precious metals ETFs beyond short-term performance considerations. As reported by Mint, gold and silver ETFs have emerged as popular options for retail investors seeking exposure to precious metals without buying physical gold or silver. However, the recent sharp movements in precious metal prices have made returns across ETFs more volatile. The contrasting performance between monthly and annual rankings suggests that investors should consider both short-term market dynamics and longer-term investment horizons when selecting precious metals ETFs for their portfolios. The current market environment, with rising bond yields, geopolitical tensions, and domestic economic challenges including fiscal deficit concerns, continues to influence precious metals performance across different timeframes.
