Silver ETF Returns: Top 5 Funds Deliver Massive Gains in One Month

The luster of silver is now clearly visible in the stock market as well. Over the past month, Silver Exchange Traded Funds (ETFs) have generated significant wealth for investors. Leading the charge is the ICICI Prudential fund, which has nearly doubled investors' money over a one-year period. This surge in silver prices was notably recorded in both domestic and global markets on Monday, directly impacting commodity-linked investments in the stock market and mutual funds. For investors looking to diversify their portfolios, Silver ETFs have become a central point of discussion. According to the latest data from ACE MF as of August 14, Silver ETFs with an Assets Under Management (AUM) exceeding 1,500 crore rupees have delivered exceptional profits.

Top Performing Silver ETFs

ICICI Pru Silver ETF is currently at the forefront of this rally. This fund has delivered an impressive return of 6 point 4 percent in just one month. The total AUM of this fund is 13,700 point 8 crore rupees. Looking at the one-year performance, it has provided a massive return of 100 point 4 percent, effectively doubling the investors' capital. Over a three-year horizon, the return stands at 47 point 6 percent. Interestingly, on both one-month and one-year scales, it has Importantly outperformed its benchmark, which showed a 0 point 0 percent return.

Kotak Silver ETF holds the second position on this list, achieving a growth of 6 point 3 percent in one month. Its AUM is recorded at 3,375 point 6 crore rupees. Over one year, this fund has also delivered a strong return of 100 point 1 percent, while its three-year return is 47 point 4 percent.

Aditya Birla Sun Life (SL) Silver ETF has also provided a 6 point 3 percent return in one month. The AUM for this fund is 2,756 point 3 crore rupees. Within a year, it has credited a profit of 100 point 2 percent to investors, and its three-year return is 47 point 3 percent.

The Largest Fund in the Category

Nippon India Silver ETF is the largest in terms of fund size or corpus. Its AUM stands at a staggering 29,499 point 4 crore rupees. Despite its large size, it has maintained steady performance with a 6 point 3 percent return in one month, 99 point 7 percent over one year, and 47 point 2 percent over three years.

Axis Silver ETF, with an AUM of 1,854 point 6 crore rupees, has also shown a sharp increase of 6 point 3 percent in one month. Its one-year return is 99 point 8 percent, and the three-year return is 47 point 2 percent.

Analyzing Long-Term Returns and Volatility

While the one-month surge is enticing, it's crucial for investors to look beyond short-term gains. Although these funds have shown tremendous growth over one month and one year, they've also faced pressure in the interim. According to the data, all these top 5 funds have given a negative return of approximately 18 point 5 to 18 point 6 percent over the last 3 months. On a 6-month scale, a decline of 5 point 2 to 5 point 3 percent has been observed. Aditya Birla SL Silver ETF led its category on the 6-month scale with a return of minus 5 point 2 percent. That's why, it's essential to evaluate a fund's performance across different time periods before making an investment decision.

Understanding Silver ETFs

For investors new to the stock market and mutual funds, it's important to understand that Exchange-Traded Funds (ETFs) are products listed on the stock exchange that can be bought and sold just like shares. Silver ETFs primarily track the prices of silver, either through an index or the commodity itself. When investing in any ETF, an investor should check how it performs against its underlying benchmark and assess its liquidity, which refers to the ease of buying and selling the units.