Silver ETFs and FoFs outperform physical silver over 3 years: Emkay Wealth Management

Silver continues to shine as an investment asset, with both Silver Exchange Traded Funds (ETFs) and Silver Fund of Funds (FoFs) outperforming physical silver over the past three-year period. The strong performance reflects robust fund management, efficient tracking, and growing investor confidence amid global market volatility, according to Emkay Wealth Management.

The brokerage in a release mentioned that silver is expected to bounce back to the US$ 52-US$53 levels and thereafter may move towards the next targets of US$58 and US$ 62, with strong support at US$ 47.60.

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Emkay Wealth Management advises that given the relatively higher volatility in silver prices, any further investments into silver may be taken as tactical positions with six months to 12 months of time horizon, with target levels for exit and further strong support levels for silver exist at US$ 45.60 and US$ 42.00, in that order are also expected.

After a brief correction, silver prices are hovering around US$ 48.80 per ounce, largely due to profit booking and the easing of trade restrictions between the US and China on critical minerals. While the Federal Reserve’s rate cut initially supported precious metals, uncertainty over further policy easing has led to short-term weakness.

As of October 31, 2025, Silver ETFs have delivered impressive returns, with ICICI Prudential and Nippon India Silver ETFs posting over 50% one-year gains, compared to around 49% for physical silver.

Over three- and six-month periods, returns ranged between 34–56%, underscoring the strength of the rally. Nippon India Silver ETF leads the segment with an AUM of Rs 15,284 crore, followed by ICICI Prudential at Rs 9,481 crore.

On other hand, Silver funds have also mirrored this trend, delivering one-year returns of around 49–50%. The ICICI Prudential Silver ETF FOF leads with an AUM of Rs 3,232 crore, reflecting strong investor participation. The minor difference in performance versus ETFs stems from fund-level expenses.

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Emkay Wealth Management believes that despite short-term volatility, the fundamentals of the silver market remain strong. Rising industrial demand from sectors such as renewable energy and electronics, coupled with constrained supply, continues to support long-term price stability.

It further recommends tactical allocations to silver through ETFs or FoFs over a 6–12month horizon, with defined targets to capture potential price appreciation.