Kotak Silver ETF vs HDFC Silver ETF: Which Silver Fund Shines Brighter in 2025?

With silver prices touching multi-year highs, investors are increasingly looking to diversify their portfolios through silver exchange-traded funds (ETFs). Among the leading options in India are the Kotak Silver ETF and the HDFC Silver ETF, both designed to mirror the performance of physical silver, but differing in returns, structure, and investment approach. In this blog, we break down their key features, performance metrics and more to create a comparative lens for you to make an informed decision

Kotak Silver ETF vs HDFC Silver ETF 

Kotak Silver ETF Overview

• Scheme Type: Open-ended Exchange Traded Fund
• Objective: To replicate or track the price of silver.
• Listing: Units are traded on stock exchanges and held in demat form.
• Unit Composition: 1 unit = 1 gram of silver.

Investment Perspective

Silver has surged to 14-year highs, driven by strong macroeconomic and industrial tailwinds. While near-term corrections are possible, they may offer attractive entry points for long-term investors. A disciplined asset allocation approach—balancing silver exposure with overall portfolio risk—is crucial.

Kotak Silver ETF Performance Snapshot (as of October 31, 2025)

The Kotak Silver ETF has outperformed its domestic silver benchmark across all periods. A ₹10,000 investment since inception would now be worth ₹21,805.60, slightly higher than the ₹21,466.05 from direct silver exposure. Over the past year, Kotak’s ETF has delivered returns of 51.89% underscoring its consistent performance.

HDFC Silver ETF Overview

• Scheme Type: Open-ended Exchange Traded Fund (ETF)
• Objective: To generate returns in line with the performance of physical silver in domestic prices, subject to tracking error.
• Assurance: While the fund aims to mirror silver prices, returns may vary slightly due to market and fund management factors.

What is the HDFC Silver ETF?

The HDFC Silver ETF offers a digital, cost-efficient alternative to holding physical silver. It provides investors exposure to silver price movements without the hassles of storage, purity checks, or liquidity issues, making it ideal for those seeking simple access to precious metals within a diversified portfolio.

HDFC Silver ETF Performance Overview (Since Inception)

Since its inception, the HDFC Silver ETF has delivered a 36.39% return, turning ₹10,000 into ₹26,003.71. The benchmark, however, outperformed slightly with 38.66% returns, highlighting a minor tracking difference. Still, HDFC’s offering remains a robust long-term silver investment option, backed by one of India’s most trusted financial institutions.

Also Read: Best Mutual Funds for Lump Sum Investments in India for November 2025

Conclusion

Both Kotak Silver ETF and HDFC Silver ETF offer efficient exposure to silver’s price momentum, but their performance trajectories differ slightly. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.