List of Best Silver ETF to Invest

Silver is not just a precious metal for jewelry and gifting anymore. With the rise in investment awareness and the evolution of financial markets, silver exchange traded funds (ETFs) have emerged as a smart way to gain exposure to this shining asset. If you're looking to invest in a silver ETF in 2025, you're in the right place.

This blog covers a complete silver ETF list, their benefits, and the key things you should know before investing. Whether you are a beginner or an experienced investor, this guide will help you choose the best silver ETF in India to add to your portfolio.

Silver ETFs: Overview

Silver ETFs are investment instruments that track the spot price of silver. These ETFs invest in physical silver or silver-related instruments regulated by SEBI in India. Fund managers buy 99.9% pure silver in bulk and store it in secure vaults on behalf of investors.

The silver ETF share price directly reflects silver’s market price. As the price of silver rises or falls, the silver ETF price moves accordingly. You don't need to worry about purity, storage, or theft — everything is handled by the fund house.

Silver ETFs are traded on stock exchanges just like equity shares. You can buy silver ETF units through your Demat account and trading account at real-time market prices.

List of Best Silver ETFs in India in 2025

Below is the updated silver ETF list for 2025. These are currently the top silver ETF options available in India, based on their performance, liquidity, and tracking efficiency.

*As on April 17, 2025

How Does Silver ETF Work?

A silver ETF works by pooling investor money to purchase high-purity silver, which is securely stored in vaults. The Net Asset Value (NAV) of the ETF reflects the price of silver in the market.

Some silver ETFs also invest a small percentage (up to 10%) in silver-based exchange traded commodity derivatives (ETCDs) to enhance returns or meet liquidity needs.

Investors can buy or sell silver ETF units just like shares through stock exchanges during trading hours. Since silver ETFs are regulated by SEBI, investor interests are well protected.

The best way to invest in silver is through ETFs if you want transparency, liquidity, and convenience without handling physical silver.

Features of Silver ETF

Here are the key features that make silver ETFs an attractive investment option in 2025:

High Purity

Silver ETFs only use silver that meets London Bullion Market Association (LBMA) standards (minimum 99.9% purity). This ensures authenticity and quality.

No Storage Hassles

With silver ETFs, you don't need lockers or vaults. The fund takes care of all storage and insurance costs.

No Making Charges

Unlike physical silver, there are no making or melting charges, which means your full investment amount goes into the asset.

Easy Liquidity

You can buy silver ETF units anytime during trading hours. Liquid ETFs ensure minimal gap between silver ETF share price and NAV.

Portfolio Diversification

Silver ETFs allow diversification into commodities. They have low correlation with equities and can balance your portfolio during uncertain times.

Regulated and Transparent

Silver ETFs are SEBI-regulated, and fund houses regularly disclose their holdings and tracking errors.

SIP Facility (via Brokers)

Though AMCs don’t offer SIPs directly in ETFs, many brokers allow you to invest in silver ETF via monthly plans.

Taxation on Silver ETF

Silver is considered a capital asset, and the tax rules for silver mutual funds and ETFs are the same as for debt instruments.

Short-Term Capital Gains (STCG)

If you sell silver ETF units within 36 months, the profit is treated as STCG and taxed as per your income slab.

Long-Term Capital Gains (LTCG)

If held for more than 36 months, LTCG is taxed at a flat 20% rate.

Things to Consider Before Investing in Silver ETFs

Before you buy silver ETF units, keep the following points in mind:

Volatility

Silver is more volatile than gold. Be prepared for price swings due to global economic and industrial demand factors.

Expense Ratio

Compare expense ratios across different silver ETFs. Higher expenses can eat into your profits.

Tracking Error

Check the tracking error to ensure the ETF closely follows the silver price. The lower, the better.

Liquidity

Choose ETFs with high trading volume to avoid buying/selling delays or large spreads.

Fund House Reputation

Stick to well-known AMCs with proven track records in managing commodities and ETFs.

Investment Horizon

For short-term trades, silver ETFs can be used tactically. For the long-term, they act as a hedge and diversification tool.

Safest Way to Invest in Silver ETFs in India

The safest and best way to invest in silver in India is through Silver ETFs via your stockbroker. Here’s a step-by-step guide:

Step 1: Open a Demat & Trading Account

You’ll need these to buy and sell ETF units on stock exchanges.

Step 2: Research and Compare

Check silver ETF price, past performance, tracking error, and liquidity. Use comparison tools if needed.

Step 3: Place Your Order

Log in to your broker platform, search for the ETF, and place a buy order based on the current market price.

Step 4: Monitor Your Investment

Keep track of silver ETF share price, global silver trends, and re-evaluate if needed.

Step 5: Exit Strategically

Sell ETF units anytime on the exchange or redeem in bulk (creation unit) through the AMC.

This method is secure, regulated, and far more efficient than holding physical silver. You also avoid risks like theft, purity concerns, and storage costs.

Conclusion

Silver ETFs have opened up a new gateway for Indian investors to benefit from silver as a commodity — without the burden of physically owning it. With increasing demand for silver in industrial applications and as an investment hedge, it makes sense to consider these funds as part of your portfolio in 2025.

From the top silver ETF options like Nippon, ICICI, HDFC, Axis, and Kotak, you have multiple choices tailored to different investor needs. These ETFs offer high purity, liquidity, ease of trade, and effective portfolio diversification.

Whether you're looking for a silver ETF with dividend, a low-cost option, or simply the best silver ETF in India, the 2025 landscape offers something for everyone. You can even balance your exposure using gold and silver ETFs together for added stability.

The key is to start small, learn how they function, and invest in a silver ETF based on your risk appetite and financial goals.

Silver has always been precious in Indian households. Now, with Silver ETFs, it has also become a smart and modern investment choice.