Silver ETFs have emerged as a popular investment vehicle, delivering exceptional returns of nearly 150% in 2025, which is twice the return delivered by gold at 75%. According to reports from Mint, silver benefits from its dual feature as both a precious metal and an industrial metal, with 2026 performance driven by rising industrial demand across electronics, solar, and EV sectors. These exchange-traded securities track silver prices in the domestic market and can be easily purchased with as little as ₹10, offering convenience without storage or purity concerns.
Tracking error represents a crucial metric for evaluating silver ETF performance, showing how closely an ETF follows actual silver price movements. As reported by Mint, a lower tracking error indicates better mirroring of silver prices, while higher tracking error indicates higher deviation between ETF and actual silver prices. Fund expenses including management fees, transaction costs, and operational charges reduce overall returns, while cash holdings for redemption management can create return differences. The tracking error can be found on fund factsheets or the AMFI website.
According to data from AMFI, Value Research, and NSE as of May 22, 2026, the top five silver ETFs by lowest tracking error include ICICI Prudential Silver ETF with a tracking error of 0.58% and AUM of ₹14,715 crore, Kotak Silver ETF with 0.63% tracking error and AUM of ₹3,513 crore, Nippon India Silver ETF with 0.80% tracking error and AUM of ₹31,126 crore, HDFC Silver ETF with 0.91% tracking error and AUM of ₹7,649 crore, and Axis Silver ETF with 0.91% tracking error and AUM of ₹2,001 crore. These funds have delivered consistent 3-year returns ranging from 52.04% to 52.69%.
Five new silver ETFs have recently opened for subscription this week, expanding the available options for investors. Tata Silver ETF and Tata Silver ETF FoF are now available with a minimum application amount of ₹5,000 and in multiples of ₹1 thereafter. The funds will allocate 95-100% in units of Tata Silver ETF and 0-5% in debt and money market instruments. Additionally, Sundaram Multi Asset Allocation Fund will open later this week with an investment objective to generate returns in line with physical silver performance, featuring a creation unit size of 3,00,000 units and minimum application amount of ₹100.
Beyond tracking error, investors should consider AUM as a measure of fund popularity, traded volume for liquidity assessment, and 3-year returns for consistency analysis. As reported by Mint, reviewing expense ratios, portfolio allocation, and broader silver price trends helps make informed investment decisions. The analysis emphasizes that these factors, combined with the ETF's ability to track silver prices closely, provide a comprehensive framework for selecting silver ETF investments. With the recent launch of new silver ETFs, investors now have more options to diversify their precious metals exposure.
