Wanna invest in white silver shine metal, invest in SBI newly launched SBI Silver ETF & SBI Silver ETF FoF. SBI Silver ETF is an open-ended exchange-traded fund that tracks silver price.
Table of Contents
What is SBI Silver ETF & SBI Silver ETF FoF
The SBI silver ETF aims to generate returns that are in line with the performance of physical silver in domestic prices, subject to tracking error.
Where is money invested?
The Scheme will invest in the following instruments ;
- Silver and Silver related securities/instruments
- Government Securities including G-Secs, SDLs, treasury bills, Triparty Repo and units of liquid mutual fund
Understanding SBI Silver ETF
SBI Silver ETF shall be benchmarked against the domestic price of silver (based on London Bullion Market association (LBMA) Silver daily spot fixing price).
What are the investment strategies?
The Scheme will invest in silver and/or silver-related instruments and will endeavour to track the performance of physical silver in domestic prices. The scheme will use a “passive” or indexing approach to achieve the scheme’s investment objective.
Under normal circumstances, SBI Silver ETF will hold an allocation of 95% to 100% in Silver and / or silver related instruments and 0% to 5% in Government. Securities including Triparty Repo, and liquid mutual fund.
The scheme will use a “passive” or indexing approach to achieve the scheme’s investment objective.
The fund management does not make any judgments about the investment merit of a particular commodity, nor will it attempt to apply any economic, financial or market analysis. Indexing eliminates active management risks concerning over/ underperformance vis-à-vis a benchmark.
SBI Silver ETF FoF – NFO Details
NFO Period – 24th June 2024- 27th June 2024
Type of scheme – An open-ended fund replicating/tracking the domestic price of silver (
Minimum application amount –Lumpsum – ₹5000/- and in multiples of Re 1/- thereafter
Benchmark- Domestic price of silver (based on LBMA Silver daily spot fixing price)
Exit Load– Not applicable
Fund Manager-Ms. Vandna Soni.
Ms. Vandna Soni joined SBIFML in December 2021 as Equity Research Analyst and has been involved in tracking of commodities and related sectors such as Cement, Metal, Oil and Gas. She has overall 10 years of experience in the area of financial services.
Total Expense ratio -To be Announced
Should you invest in SBI Silver ETF FoF – Review?
Before understanding, should you invest or not? Let’s first understand return generated by other silver ETFs that are already available in the market.
Let’s compare ETFs first. So you will get to know which silver ETF is best?
| Name | Fund Size | 1D | 6M | 1Y | 3Y | 5Y | 10Y | Expense ratio |
|---|---|---|---|---|---|---|---|---|
| Kotak Silver ETF Fund of Fund | 23.31 | -0.01 | 17.69 | 27.30 | 0.00 | 0.00 | 0.00 | 0.60 |
| Nippon India Silver ETF FOF | 335.80 | -0.21 | 17.76 | 28.01 | 0.00 | 0.00 | 0.00 | 0.58 |
| HDFC Silver ETF Fund of Fund – Direct Plan | 89.47 | -0.02 | 18.95 | 29.43 | 0.00 | 0.00 | 0.00 | 0.27 |
| Edelweiss Gold and Silver ETF FoF | 95.98 | -1.30 | 15.84 | 24.39 | 0.00 | 0.00 | 0.00 | 0.68 |
| Nippon India Silver ETF FOF – Direct Plan | 335.80 | -0.21 | 17.95 | 28.41 | 0.00 | 0.00 | 0.00 | 0.25 |
| UTI Silver ETF Fund of Fund – Direct Plan | 27.60 | -0.12 | 20.65 | 32.90 | 0.00 | 0.00 | 0.00 | 0.12 |
| Kotak Silver ETF Fund of Fund – Direct Plan | 23.31 | -0.01 | 17.97 | 27.89 | 0.00 | 0.00 | 0.00 | 0.14 |
| Aditya Birla Sun Life Silver ETF FOF – Direct Plan | 140.04 | -1.67 | 18.47 | 28.35 | 0.00 | 0.00 | 0.00 | 0.21 |
| Motilal Oswal Gold and Silver ETFs Fund of Funds – Direct Plan | 71.34 | 0.06 | 15.52 | 24.02 | 0.00 | 0.00 | 0.00 | 0.16 |
| Motilal Oswal Gold and Silver ETFs Fund of Funds | 71.34 | 0.06 | 15.32 | 23.56 | 0.00 | 0.00 | 0.00 | 0.51 |
| EfEName | Fund Size | 1D | 6M | 1Y | 3Y | 5Y | 10Y | ER |
|---|---|---|---|---|---|---|---|---|
| Tata Silver ETF Fund of Fund | 40.21 | -0.23 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.60 |
| UTI Silver ETF Fund of Fund | 27.60 | -0.12 | 20.41 | 32.38 | 0.00 | 0.00 | 0.00 | 0.50 |
| Aditya Birla Sun Life Silver ETF FOF | 140.04 | -1.67 | 18.18 | 27.74 | 0.00 | 0.00 | 0.00 | 0.66 |
| Tata Silver ETF Fund of Fund – Direct Plan | 40.21 | -0.22 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.07 |
| Axis Silver Fund of Fund | 41.85 | -0.25 | 18.50 | 28.14 | 0.00 | 0.00 | 0.00 | 0.70 |
| ICICI Prudential Silver ETF Fund of Fund | 655.17 | -0.16 | 18.52 | 28.32 | 0.00 | 0.00 | 0.00 | 0.60 |
| Axis Silver Fund of Fund – Direct Plan | 41.85 | -0.25 | 18.68 | 28.69 | 0.00 | 0.00 | 0.00 | 0.15 |
| HDFC Silver ETF Fund of Fund | 89.47 | -0.03 | 18.75 | 28.98 | 0.00 | 0.00 | 0.00 | 0.60 |
| Edelweiss Gold and Silver ETF FoF – Direct Plan | 95.98 | -1.30 | 16.05 | 24.87 | 0.00 | 0.00 | 0.00 | 0.29 |
| ICICI Prudential Silver ETF Fund of Fund – Direct Plan | 655.17 | -0.15 | 18.68 | 28.83 | 0.00 | 0.00 | 0.00 | 0.12 |
From the above two charts, it is quite evident that most of the ETFs have been launched in the recent past. The ETF has given good returns in the last year. The Fund with the lowest expense ratio has given best return.
SBI Silver ETF and Fund of Fund present investors with a strategic chance to broaden their investments in silver, thereby capitalizing on its value as both an industrial and precious metal. With skilled management and a strong emphasis on long-term growth, these funds serve as a promising inclusion to investment portfolios in the face of changing economic circumstances.
As of today, we do not know the expense ratio ( tracking error ) of the fund. If you believe that commodities can give you a good hedge against equity, you can consider investing in silver ETF. But for the time being old and return-generating products should be chosen.
