Nippon Silver ETF

About Nippon India Silver ETF

• The Nippon India Silver ETF is an exchange-traded fund that focuses on investing in silver.
• The ETF is managed by a Nippon India Mutual Fund Company.
• The Nippon India silver ETF was launched on February 2, 2022.
• The scheme’s assets under management (AUM) stood at ₹3,171 crore as of June 30, 2024.
• Vikram Dhawan is the fund manager of the ETF.
• The ETF is traded on both stock exchanges like a stock, which provides liquidity and flexibility for investors.
• It can be bought and sold during market hours at prevailing market prices through a demat account.

Investment Objective & Benchmark

• The scheme aims to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking errors.
• The ETF is benchmarked against the domestic price of the physical silver based on the London Bullion Market Association (LBMA) silver daily spot fixing price.
• The ETF allows investors to acquire exposure to the silver market without purchasing physical silver. It is exchanged on exchanges, ensuring liquidity and simplicity of access.
• Silver ETF eliminated the risk of impurities which is a key concern for many who want to invest in metals like silver and gold.
• Nippon India silver ETF has a very high-risk level profile.
• The Silver 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 performance of the ETF is closely aligned with the price of silver, subject to market fluctuations and fund expenses.
• Silver is often considered a hedge against inflation and economic uncertainty.

Asset allocation & portfolio composition

• The fund allocation of the ETF consists of 97.56% in silver and 2.44% in cash and cash assets.
• The top holding of Nippon India Silver ETF majorly consists of silver around 97.56%.
• Since its inception, the ETF has given an annualised return of 15.15%.
• In a single year, the Nippon India Silver ETF has given a return of 27.24% compared to the benchmark’s 28.73% yield as of June 30, 2024.