Silver ETFs deliver over 25% return in 2026. Time to invest or time to stay cautious?

With MCX silver futures hitting Rs 3,19,949 per kg and commodity ETFs delivering over 25% returns in the first 20 days of 2026, experts say existing investors may continue to accumulate, while new investors can consider taking positions as part of a diversified multi-asset portfolio.

Akshat Garg, Head - Research & Product of Choice Wealth, said that new investors should consider taking positions of around 5-10% in Silver ETFs as part of building a diversified multi-asset portfolio, capitalising on the metal's robust structural drivers, while the existing silver ETF holders should avoid exiting at current levels, as the supportive forces remain intact.

Also Read | Gold & silver exposure should be capped at 10–20% of overall asset allocation: Deepak Shenoy


Garg further said that dips remain buying opportunities for long-term portfolios and gold and silver are very important for investors due to central bank accumulation, monetary easing tailwinds, and silver's surging industrial demand.

There were 29 funds based on silver ETFs in the current calendar year, of which eight have delivered over 30% return. Tata Silver ETF FoF gave the highest return of 32.29% in 2026 so far, followed by Nippon India Silver ETF FOF which gave 31.28% return in the same period.

Axis Silver FoF gave 30.20% return in 2026 so far. Bandhan Silver ETF was the last one in the list, which gave 26.53% return in 2026.

A report by Tata Mutual Fund on commodities said that silver may continue to trade firms with high volatility post record surge in recent months, as the strong demand outlook along with supply restrictions/inventory dislocation are fueling the current trend.

“We believe silver may do well in the medium to long term with a data-dependent approach, while a boost in industrial demand and Fed rate cut are the key bullish factors. Investors may look to accumulate/ invest in silver through SIP / staggered mode, considering the volatile nature of the commodity,” the Tata Mutual Fund report further said.

In the last year, these silver-based ETFs have delivered over 200% return, with Tata Silver ETF being the top performer and Nippon India Silver ETF giving 212% in the last year. UTI Silver ETF was the last one in the list and gave 206% return in the last year.

Satish Dondapati, Fund Manager, Kotak Mutual Fund, said over the past one-year, silver prices have surged by more than 170%, while gold has gained over 70%, and both metals are widely regarded as safe-haven investments, and silver, being an industrial metal as well, has an added advantage in the current macroeconomic scenario.

The report by Tata Mutual Fund attributed the surge in the last year to Silver's new status as a U.S. critical mineral, persistent supply shortages, and a powerful wave of industrial and investor demand.

Also Read | Silver ETFs rally up to 188% in 1 year. Should investors stay invested or book gains?

“Ongoing tariff concerns, continued delivery issues between London and New York, and expectations of falling real interest rates made the metal an attractive asset to hold,” the Tata Mutual Fund report said.

Gold/Silver ratio drops from 82 to 58 in one month. Gold/Silver ratio of 58 suggests that silver might be relatively cheaper compared to gold, which could make it more attractive to traders who believe the ratio will eventually move back toward its historical averages

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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