In recent times, silver has attracted a lot of attention from investors, and it is even performing better than gold. Historically, silver has remained under gold’s shadow. But if we look at the returns delivered by both precious metals in 1 year, silver has outperformed gold. In the last 1 year, silver prices have jumped over 48% against gold’s 35% gain. This is also helping other silver-based assets like silver ETFs. The returns in physical silver mirrored the yields in silver ETFs. The average return in the silver ETF category is 35% in the last 1 year.
Since equity mutual funds have given negligible returns in the last one year due to a severe market correction in the last 6 months, silver ETFs’ gains look beyond belief. In the case of an ETF, besides returns, the second most important thing that an investor keeps in mind while choosing a scheme is the expense ratio of that fund. Always remember that the higher the expense ratio, the lower the returns. In this article, we will take a look at the top 5 silver ETFs with the lowest expense ratios.
Also read: Top 5 Cheapest Gold ETFs to Own in India
Silver ETFs: Check out these 5 cheapest options based on low expense ratio
1. Aditya Birla Sun Life Silver ETF – 0.35%
1-year return: 34.20%
2. Axis Silver ETF – 0.37%
1-year return: 29.78%
3. Mirae Asset Silver ETF – 0.38%
1-year return: 33.92%
4. HDFC Silver ETF – 0.40%
1-year return: 31.98%
5. ICICI Prudential Silver ETF – 0.40%
1-year return: 34.13%
(Data source: Value Research)
Benefits of investing in silver ETFs
Diversification – By investing in silver ETFs, the portfolio can be diversified, which keeps the risk balanced.
Liquidity – Silver ETFs are more liquid than other assets, that is, they can be bought and sold easily.
Low cost – Investing in ETFs is easy and economical as compared to physical silver, as there are no storage and security concerns.
Inflation protection – Precious metals like silver are considered a safe investment against inflation.
Risks of investing in silver ETFs
Price volatility – Silver prices depend on global factors, demand-supply and economic conditions, which can lead to huge fluctuations.
No interest or dividend – Unlike other investment options, silver ETFs do not pay interest or dividend, so it cannot be the sole source of income.
Impact of global economic conditions – If the global economy slows down or demand decreases, silver prices may be affected.
Also read: Top 5 cheapest index funds to invest in 2025
Who should invest in silver ETFs?
Investors with medium to high risk appetite – Who can handle market volatility and plan to invest for the long term.
Investors seeking diversification – who do not want to limit their portfolio to just equities and gold.
Investors seeking inflation protection – who want to protect their investments from the effects of inflation.
Summing up
Silver ETFs have performed well in recent years and provide investors with an excellent alternative. However, it is important to understand its benefits and risks before investing. If you want to build a balanced portfolio and take advantage of the potential price rise of silver, silver ETFs can be an attractive investment option.
