The Securities and Exchange Board of India (Sebi) has paved the way for the Silver ETFs after it recently came out with operating norms for silver ETFs. A silver ETF scheme should invest at least 95% of the net assets value in silver and silver-related instruments. The silver ETF norms further require that the tracking error -- the difference in daily returns between physical silver and the NAV of Silver ETF – should not exceed 2%. Could Silver ETFs be able to generate the kind of interest that gold ETFs does globally? Despite the disadvantages over gold, silver ETFs would be an interesting addition to the portfolio purely for the purpose of diversification.

Source: Indian Express November 29, 2021 21:09 UTC