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Silver prices witnessed a remarkable surge in both domestic and global markets on Monday. This rally has had a direct impact on commodity investments linked to the stock market and mutual funds. If you are looking to diversify your investment portfolio, Silver Exchange Traded Funds (ETFs) are currently in the spotlight. According to the latest data from ACE MF as of August 14, Silver ETFs with Assets Under Management (AUM) exceeding ₹1,500 crore have delivered impressive returns to investors. Let us examine the performance of the top 5 Silver ETFs available in the market.

ICICI Pru Silver ETF: This fund is currently leading the pack. It has delivered an impressive return of 6.4% in just one month. The fund's total AUM stands at ₹13,700.8 crore. Over one year, it has generated a massive return of 100.4%, effectively doubling investors' money. Its three-year return stands at 47.6%. Interestingly, it has significantly outperformed its benchmark (0.0% return) over both one-month and one-year timeframes.

Kotak Silver ETF: Kotak takes the second spot on this list, having recorded a gain of 6.3% in one month. Its AUM is ₹3,375.6 crore. Over one year, this fund has also delivered a strong return of 100.1%, and 47.4% over three years.
Aditya Birla SL Silver ETF: With a one-month return of 6.3%, this fund has an AUM of ₹2,756.3 crore. Within a year, it has generated a return of 100.2% for investors, and 47.3% over three years.

Nippon India Silver ETF: In terms of corpus—or fund size—this is the largest Silver ETF, boasting an AUM of ₹29,499.4 crore. It has delivered steady returns of 6.3% over one month, 99.7% over one year, and 47.2% over three years.

Axis Silver ETF: With an AUM of ₹1,854.6 crore, this fund has also shown a gain of 6.3% in one month. Its one-year return stands at 99.8%, and its three-year return is 47.2%.

**Importance of looking at long-term returns**
It is not prudent to invest based solely on a one-month rally. Although these funds have shown a massive surge over one-month and one-year periods, they have also faced pressure during the intervening times. Data indicates that over the last three months, all these top 5 funds have delivered negative returns of approximately 18.5% to 18.6%. Meanwhile, a decline of 5.2% to 5.3% has been observed over a six-month horizon. Aditya Birla SL Silver ETF has outperformed its category peers with a return of -5.2% over the six months. Therefore, before selecting any fund, one must examine its performance across various timeframes.

**What are Silver ETFs?**
For investors new to the stock market and mutual funds, it is 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 silver prices (via an index or the commodity itself). When investing in any ETF, an investor should consider how the fund performs relative to its underlying benchmark and assess its liquidity (the ease of buying and selling).

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