In comparison, gold ETFs grew 81.78% during the same period.
Investor folios in silver ETFs crossed 8.37 lakh in May 2025, up from over 6 lakh in January. The rise shows growing retail interest in silver through mutual funds.
Silver prices surged more than 9% last week, hitting the highest level since 2012.
Riya Singh, Research Analyst at Emkay Global, said renewed trade tensions, safe-haven demand, and tight supply are driving the rally. “ETF open interest rose nearly 6%, and silver-backed ETFs saw their best weekly gain since February,” she said.
The gold-silver ratio dropped from over 100 in April to around 92. Singh said this leaves more room for silver to catch up.
“Supply remains constrained. Inventories are at multi-year lows. Macro tailwinds are strong,” she added.
Retail investors are using ETFs and FoFs to tap into silver without holding it physically.
“Silver funds benefit from rising industrial demand, inflation hedging, and geopolitical uncertainty,” said Satish Dondapati, VP and Fund Manager, Kotak AMC.
He said the convenience of investing through mutual funds is attracting wider participation.
Dondapati warned that high prices bring risks. “Silver is at a 13-year high. Volatility and rate sensitivity remain key concerns,” he said. He advised investors to diversify and focus on long-term trends.
SEBI allowed silver ETFs in late 2021. Since then, product offerings and investor adoption have expanded steadily. Recent trends show silver gaining ground in investor portfolios alongside gold.