Why your gold or silver ETF isn’t fully capturing domestic prices bl-premium-article-image

Sat Dec 20 2025

That gold and silver have witnessed a solid run in the past two-three years and have seen heightened interest from investors is well acknowledged. At nearly ₹1.11 lakh crore, assets under management for gold ETFs (exchange traded funds) – the preferred vehicles for investment in the commodity – have risen 2.5x in the last one year and 5.3x in the past three years. Silver ETFs are a little shy of ₹48,000 crore after mostly starting off only two-three years ago.

However, one aspect that has received limited attention is that ETFs tracking gold and silver have lagged their benchmarks that measure the prices of these commodities substantially in recent years.

The tracking difference, a metric to compare the returns of ETFs against those of their benchmarks, is clearly indicative of this trend.

Source: https://www.thehindubusinessline.com