By Lal Singh Investors looking to preserve assets traditionally turned to gold and silver. Besides appealing to investors as precious metals, they help to stabilise and diversify portfolios. Although gold and silver are staples in most resilient portfolios, storage and verifying purity continue to be some of the common concerns with these purchases.
Today, you have more convenient options like precious metal ETFs. Particularly with these digital assets, you can stay invested in gold and silver without owning them physically. The investing process has been simplified, and it has become more accessible. Let’s understand why precious metal ETFs are convenient. We have also curated a list of ETFs for you to explore.
Why invest in precious metal ETFs
When you invest in precious metal ETFs, you benefit from the value proposition of gold and silver along with the convenience of market-based investing. These funds are traded on stock exchanges. So, you get the opportunity to purchase and sell them just like stocks.
Secure storage and no purity concerns
There’s no storage-related challenge, which is one of the biggest advantages of investing in precious metal ETFs. Investors do not have to arrange for secure lockers or worry about theft. Also, purity-related concerns are eliminated from the investment process.
As ETFs closely track the value of the underlying metal, they offer transparency. Moreover, you do not have to make large upfront purchases and can gradually build your exposure to precious metals through ETFs.
5 Precious metal ETFs that can help investors store value
We have curated five gold and silver ETFs that investors may consider including in their portfolios.
1. Tata Gold ETF
Tata Gold ETF helps you gain exposure to gold through a regulated structure. It offers a convenient alternative to purchasing physical gold, while you continue to benefit from the value of the precious metal. If you are looking for simplicity in including gold in your portfolio, you may consider this ETF.
- Expense Ratio: 35%
- 1-Year Return: 93%
- 3-Year Return: 04%
- 5-Year Return: N/A
2. Tata Silver ETF
You can capitalise on the growth potential of silver through the Tata Silver ETF. Silver is popular as a precious metal, while it also finds application in industrial purposes, which helps you diversify your portfolio. The ETF format makes access to silver easier compared to purchasing and storing physical assets.
- Expense Ratio:39%
- 1-Year Return: 11%
- 3-Year Return: 14%
- 5-Year Return: N/A
3. Nippon Gold ETF
Nippon Gold ETF is one of the precious metal ETFs that helps you gain exposure to gold through the stock market. It allows investors to participate in movements in gold prices, providing both flexibility and convenience. If you’re looking to diversify your portfolio, the Nippon Gold ETF can be a pick.
- Expense Ratio: 81%
- 1-Year Return: 68%
- 3-Year Return: 40%
- 5-Year Return: 41%
4. ICICI Prudential Gold ETF
With the ICICI Prudential Gold ETF, you get another alternative to invest in gold without owning the asset physically. The ETF structure ensures transparency and offers ease of trading. When market conditions are uncertain, it helps investors stabilise their portfolios and store value.
- Expense Ratio: 49%
- 1-Year Return: 89%
- 3-Year Return: 01%
- 5-Year Return: 42%
5. HDFC Silver ETF
Investors looking to invest in silver in ETF format may go for the HDFC Silver ETF. It eliminates the challenges associated with physical ownership. Investors can benefit from the long-term growth potential of silver. The ETF also offers convenience and liquidity as you trade the asset on the market.
- Expense Ratio: 50%
- 1-Year Return: 56%
- 3-Year Return: 84%
- 5-Year Return: N/A
Conclusion
Investments in gold and silver have become much more convenient through precious metal ETFs, compared to traditional ownership. When you include any of the ETFs shortlisted in this blog in your portfolio, the digital process eliminates concerns like storage, security and purity.
Precious metal ETFs have historically helped investors balance their portfolios with other assets. Explore these ETFs for flexibility and stability as an alternative to physical assets.