HDFC Silver ETF

About HDFC Silver ETF

• The HDFC Silver ETF is an open-ended scheme that tracks the performance of physical silver.
• The fund guarantees the quality of the underlying silver while providing investors with a simple and affordable option to invest in the metal through a digital platform.
• On the National Stock Exchange (NSE) the fund is traded under the symbol HDFCSILVER.
• The ETF was launched on February 9, 2022.
• The HDFC Silver ETF had ₹209.61 crore in assets under management (AUM) as of June 30, 2024.
• Bhagyesh Kagalkar manages the fund.

Investment Objective and Benchmark

• The HDFC Silver ETF’s investment objective is to provide returns that track the performance of actual silver.
• The domestic silver prices, determined by the London Bullion Market Association’s (LBMA) daily spot fixing price, serve as the benchmark for the HDFC Silver ETF.
• Like gold, investing in the HDFC Silver ETF can help diversify an investor's portfolio and act as a hedge against currency devaluation.
• The HDFC Silver ETF is ideal for those looking to invest their money in a time horizon of three years or more.
• The fund does not have any entry or exit load, which means investors won’t have to incur any additional charges to buy or sell units.
• It falls under the very high-risk category, reflecting the inherent volatility and risk associated with investments in silver.
• Due to its application in modern, environmentally friendly technologies like electric cars and solar energy, silver may become more in demand, which might be advantageous for ETF investors.
• Investors can purchase small units of the ETF, with each unit equivalent to around one gram of silver.
• The Securities Transaction Tax does not apply to the ETF, which lowers the total cost of investing.

Asset Allocation & Portfolio Composition

• The HDFC Silver ETF will invest 95% to 100% of its assets in silver and up to 5% in money market instruments, debt securities, and mutual fund units that are part of debt schemes.
• As of June 28, 2024, the HDFC Silver ETF’s portfolio consists of 97.72% silver and 2.28% in cash, cash equivalents and net current assets.
• The fund has produced returns of 24.94% in the past year, as of June 28, 2024, against the benchmark returns of 26.18%
• Since its inception, the ETF has delivered a return of 29.87%.