Edelweiss Silver ETF

About Edelweiss Silver ETF

• The Edelweiss Silver ETF is an open-ended scheme offered by the Edelweiss Management Company.
• The ETF primarily invests in physical silver. This means it holds silver bullion or silver-related assets, and its value reflects the price of silver.
• Edelweiss Silver ETF was launched on November 21, 2023.
• Assets under management (AUM) stood at ₹49.85 crore as of June 28, 2024.
• Amit Vora has been the fund manager of the ETF since July 1, 2024.
• The ETF is traded on both stock exchanges NSE and BSE like a stock, which provides liquidity and flexibility for investors.
• It can be bought and sold during market hours at prevailing market prices with individual demat accounts.

Investment Objective & Benchmark

• The primary objective of the Edelweiss Silver ETF is to offer returns that mirror the performance of silver prices.
• It is benchmarked against the domestic price of silver.
• Investors gain exposure to the silver market without having to deal with the logistics of buying, storing and insuring physical silver themselves.
• Edelweiss Silver ETF invests in physical silver bullion, which means the ETF holds silver bars or coins that are stored securely.
• This ETF allows investors to diversify their portfolios by adding a precious metal, which may behave differently from other asset classes like stocks and bonds.
• The ETF follows a passive investment approach.
• Silver is often considered a hedge against inflation and economic uncertainty.
• Apart from being a precious metal, silver also has industrial uses that ensure a stable demand even amid market volatility.
• Silver is used in electric vehicles which have been witnessing a spike in demand.
• Buying a silver ETF is a cheaper alternative to investing in the physical form of the metal. Further, the ETF also offers greater flexibility as its units can be bought and sold seamlessly on the exchanges.

Asset allocation & portfolio composition

• The fund allocation of Edelweiss Silver ETF consists of 97,08% in silver, 2.43% in cash and cash equivalent and 0.49% in TREPS RED.
• The top holding of Edelweiss Silver ETF majorly consists of silver around 97.08%.
• Since its inception, the ETF has given an annualised return of 31.99% against the benchmark index's yield of 40.71%.