The Kotak Silver ETF, managed by Kotak Mahindra Asset Management Company Limited, aims to replicate the performance of physical silver prices, operating as an open-ended, passive investment scheme.

This ETF tracks the price of silver based on the LBMA daily spot fixing price, ensuring a close alignment with silver market movements while maintaining a modest tracking error of 0.56%.

With a substantial focus on silver, the portfolio consists of 89.9% physical silver and 7.88% from silver sourced in Gujarat, indicating a high concentration in a single asset class.

Over the past year, the fund has delivered impressive returns of 57.4%, showcasing its ability to capitalize on silver price fluctuations effectively in the current market environment.

The fund has a total AUM of ₹1664.2 Cr, with a low expense ratio of 0.45%, providing a cost-efficient option for investors looking to gain exposure to silver without significant liquidity concerns.