Investing in gold and silver ETFs? These funds delivered up to 172% returns

• Gold and silver ETFs posted strong returns but carry high risk
• Experts recommend ETFs for diversification, not market timing.
• Assess volatility, tracking error, and expenses before investing

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While gold and silver ETFs present an attractive option, should investors chase the rally just because precious metals are on a sharp run-up?

The surge in precious metal prices has undoubtedly prompted the majority of investors to expand their portfolio in various forms of gold and silver assets, particularly exchange-traded funds, or ETFs.

Gold ETFs have generated returns between 16.65 percent over 10 years and 82.32 percent over one year, while silver ETFs have posted gains ranging from 59.24 percent over 10 years to 171.30 percent over one year.

To compare their returns with their physical counterparts, domestic futures gold has gained nearly 87 percent and silver 181 percent, from the year-ago period.

Gold and silver ETFs follow London Bullion Market Association (LBMA)-linked prices instead of domestic rates, which partly explains the gap with physical metal prices. Differences also stem from AMC-applied premiums or discounts and tracking error.

Moneycontrol data on gold and silver ETFs, as of February 25, highlights trailing returns for 13 gold ETFs and 10 silver ETFs through February 25, 2026.

Gold Exchange Traded Fund (ETF) Performance

Risk level: High

The 1-year return from Quantum Gold ETF stands out as the top performer, delivering the highest return at 82.32 percent. However, UTI Gold ETF has shown greater consistency over the 2 to 10-year time horizons, outperforming most peers.

Overall, returns from 13 gold ETFs ranged from 16.65 percent to 82.32 percent as of February 25, 2026.  In comparison, domestic futures gold has gained nearly 87 percent from a year ago.

Silver Exchange Traded Fund (ETF) Performance 

Risk level: High

Investment in silver ETFs is relatively new in the market, with ICICI Prudential Silver ETF being the first mover to open for subscription, launched on January 5, 2022. The fund has outperformed its peers with 92.19 percent returns in the 2-year tenure. Tata Silver ETF emerged as the top-performing asset, posting the highest one-year return of 171.30 percent.

Overall, returns from 10 silver ETFs ranged from 57.19 percent to 168.85 percent as of February 25, 2026.  In comparison, domestic silver futures have gained nearly 181 percent, from a year ago.

In India, Sebi-registered asset management companies offer gold and silver ETFs on stock exchanges, enabling investors to gain exposure to precious metals whose prices move with market supply and demand. These ETFs pool investments into a single metal, and their net asset value (NAV) reflects the underlying price on the exchange.

Gold and silver have recently reached a three-week high on renewed safe-haven demand, though the rally is being driven by multiple long-term global factors rather than a single trigger. With volatility in gold and silver prices, does it make sense to invest in precious metal ETFs?

Piyush Jhunjhunwala, Founder & CEO of Stockify, believes that price volatility is normal because gold and silver prices respond to global movements. Investors should maintain disciplined asset allocation, rather than attempting to predict future prices for each asset class.

“Instead of attempting to time short-term price movements, investors should use gold and silver ETFs as strategic diversification tools in their overall portfolio— generally allocating between 5-15 percent of their portfolio to these asset classes based on their personal risk tolerance,” said Jhunjhunwala.

He advises that, though traders may take advantage of short-term price movements, a larger share of ETF inflows reflects tactical asset diversification rather than time-based opportunistic trading behaviour. “Investing in gold and silver ETFs using SIP may be more effective than trying to achieve that objective through making a single large investment at potentially uncertain price levels.”

Investments in precious metal ETFs involve risks. Experts advise investors to assess volatility, tracking error, expense ratio, and other key parameters before investing. Given that gold and silver typically reward patience, evaluating an ETF’s shot-and long-term performance is crucial to gauge its consistency and return potential.