Silver ETFs Outshine Gold in Rebound as IT Leads Gains; Defence Firms, Liquid Steady on Friday

Mumbai, Oct 9: All 26 gold ETFs and all 19 silver ETFs listed on the exchanges rallied on Friday. Silver ETFs performed better, with the top funds gaining around 1.8 per cent, compared with gains of about 1.4 per cent in gold ETFs. IT ETFs rose the most, gaining nearly 3 per cent, while defence ETFs posted marginal gains and liquid ETFs remained flat. 

The rally came as the Sensex and Nifty recovered from the previous session’s decline, supported by a fall in crude oil prices and the absence of signs of further escalation in the US-Iran conflict. 

These ETFs have had a difficult month. Over the past 30 days, gold ETFs have lost around 3.9 per cent, while silver ETFs have declined by approximately 6.9 per cent. IT ETFs have fallen by more than 7 per cent, while defence ETFs have lost over 10 per cent. Liquid ETFs have remained positive over the same period, gaining around 0.4 per cent. 

Over the past year, silver ETFs have gained around 36 per cent, followed by gold ETFs at approximately 19 per cent, defence ETFs at around 12 per cent and liquid ETFs at about 5 per cent. IT ETFs, however, are down around 20 per cent. 

Gold ETFs: All 26 See Gains 

GoldBeES gained 1.42 per cent to close at Rs. 122.66. It recorded a turnover of Rs. 88.91 crore, making it the most traded gold ETF. Tata Gold ETF rose 1.48 per cent to close at Rs. 14.42, while GoldIETF gained 1.51 per cent to close at Rs. 127.21. HDFC Gold ETF increased by 1.35 per cent to Rs. 126.71, and SETFGOLD rose 1.42 per cent to Rs. 126.54. 

International gold prices also gained around 1 per cent, closing near USD 4,200 an ounce. 

Despite Friday’s gains, GoldBeES remains around 17 per cent below its 52-week high of Rs. 148.14. This suggests that the ETF is recovering but has yet to approach its previous peak. 

Silver ETFs: Gains Outpace Gold 

Silver ETFs recorded higher gains than gold ETFs on Friday. All 19 silver ETFs listed on the exchanges ended in positive territory, with gains ranging from 1.32 per cent to 2.07 per cent. 

SilverBeES gained 1.83 per cent to close at Rs. 209.64. With a turnover of Rs. 158.18 crore, it was the most traded silver ETF. Tata Silver ETF rose 2.01 per cent to close at Rs. 21.32, while HDFC Silver ETF gained 1.84 per cent to Rs. 209.62. SilverIETF closed at Rs. 218.87, up 1.81 per cent, and SBI Silver ETF gained 1.80 per cent to Rs. 214.95. 

Silver ETFs also recorded higher trading turnover than gold ETFs despite having fewer listed funds. The combined turnover of the 19 silver ETFs was around Rs. 238 crore, compared with approximately Rs. 211 crore across the 26 gold ETFs. 

However, the recent decline in prices is worth keeping in mind. SilverBeES remains around 42 per cent below its 52-week high of Rs. 360, compared with a gap of around 17 per cent for GoldBeES. 

Silver is considered both a precious metal and an industrial metal. As a result, it can experience sharper declines during sell-offs but may also recover more quickly than gold when market conditions improve. 

IT ETFs: biggest gainers of the day 

All 10 IT ETFs rose, tracking the rebound in technology stocks. ITBeES (ITBEES), the most traded, gained 2.99 per cent to Rs 31.72. HDFC Nifty IT ETF (HDFCNIFIT) led with a 3.21 per cent rise to Rs 30.51, while ITIETF rose 3.09 per cent to Rs 31.74. Even so, ITBeES is about 28 per cent below its 52-week high. 

Defence ETFs: small gains, thin trade 

All three defence ETFs rose, but modestly. Nifty India Defence ETF by Motilal Oswal (MODEFENCE), the largest, gained 0.57 per cent to Rs 98.95. BSE India Defence-Tracking ETF (DEFENCE) added 0.54 per cent to Rs 75.15, and Groww Nifty India Defence ETF (GROWWDEFNC) rose 0.11 per cent to Rs 89.96. Total turnover was only about Rs 9 crore, far below gold and silver. 

Liquid ETFs: steady as ever 

Of the 20 liquid ETFs, 13 edged up by 0.03 to 0.04 per cent and seven were flat. None fell. LiquidBeES (LIQUIDBEES) stayed at Rs 1,000.01, LiquidCase (LIQUIDCASE) rose 0.03 per cent to Rs 116.31 and Liquid1 (LIQUID1) added 0.04 per cent to Rs 1,126.41. These funds park money in very short-term debt and earn about 5 per cent a year. Silver’s one-day gain of 1.8 per cent is more than four times what liquid funds earned in the past 30 days. 

ETF Snapshot: Gold, Silver, IT, Defence, Liquid 

Category	Representative ETF	LTP (Rs)	% Change	Trend
Gold	GoldBeES	122.66	+1.42%	All 26 funds higher
Silver	SilverBeES	209.64	+1.83%	All 19 funds higher
IT	ITBeES	31.72	+2.99%	All 10 funds higher
Defence	MODEFENCE	98.95	+0.57%	All 3 funds higher
Liquid	LiquidBeES	1,000.01	+0.00%	Stable, near-flat

To know how to buy gold ETFs, visit:  https://hdfcsky.com/etf/gold-etf. For silver ETFs, see: https://hdfcsky.com/etf/silver-etf 

Source

•  https://www.nseindia.com/market-data/exchange-traded-funds-etf