Top 5 Metal ETFs to Invest in 2026

The investment landscape continues to change as new trends gain traction. In 2026, investing in metals through ETFs can offer a straightforward way to gain exposure to metals without the complexities that come with physical storage. With inflation, supply chain issues, and the ever-changing geopolitical landscape impacting the global market, investing in metals ETFs can be a smart way to diversify and hedge against economic uncertainties. 

Whether you’re looking to invest in the best metal ETFs in India or researching commodity ETFs, this guide will help you find the best ETFs that fit your investment strategy. We will include gold and silver ETFs and mining ETFs in India to help you build a solid strategy for your ETFs.

Metal ETFs are designed to keep track of industrial and precious metals and their related industries. They offer investors a simple, cost-efficient, and highly liquid way to trade on stock exchanges like NSE and BSE. With investors focusing on commodities during increasing prices for metals, India's ETF market has expanded significantly, surpassing ₹10 lakh crore in assets under management (AUM) by the beginning of 2026. 

Recent reports on tools like Tickertape and Groww show that precious metal ETFs have performed remarkably well, with some silver funds achieving a 1-year growth of over 165%. This blog examines the best 5 metal ETFs to invest in during the 2026 financial year, their performance, and how to best include them in your portfolio for maximum returns.

Understanding Metal ETFs

Precious metals ETFs are a type of fund that invests in certain stocks of gold and silver mining companies. They also invest in stocks of several mining companies and other metals. In 2019, the SEBI barred direct investment in commodity ETFs, thus limiting metal ETFs to precious metals and mining. This led to the creation of the Nifty Metal Index-focused ETFs, which offered investors a means to gain indirect exposure to basic metals through mining companies.

Investment strategies targeting metal ETFs have the most relevance in 2026. Analysts are forecasting a surge in the price of gold correlated to demand from emerging markets like India and China. Each ounce of gold is estimated to be priced at close to 5,000 dollars. Silver is referred to as gold's volatile cousin and will likely also spike in price. Silver demand in the industry from renewables and electronics is expected to drive demand. 

The best metal ETFs in India offer local investors a long-term capital gains tax of 12.5% after 1 year. Additionally, investors are protected against a depreciation of the Indian Rupee. India is experiencing an infrastructure boom, resulting in increased demand for metals. Investors will be able to capitalise on this by investing in mining ETF India options, which allow for capturing upstream growth in companies such as Tata Steel and Hindalco.

ETFs and commodities are now considered structured and less risky due to their outperformance in 2025. Metals often experience price changes in an opposite direction compared to equities. This results in a less risky asset structure. The focus has shifted towards ETFs as a navigational structure for investing in turbulent markets after 2025. The wider the metal ETF, the riskier the ETF; mining-focused metals are less secure. If you dislike risk, focus on metal ETFs; mining-based metals are riskier.

Why Invest In Commodity ETFs In 2026

Commodity ETFs are simple and easy to invest in compared to dealing with physical metals, where you have to contend with issues such as storage and purity. ETFs allow you to trade through the stock market, and all you need is a demat account. In India, where precious metals like gold and silver are very important, being able to invest without physical ownership really helps.

There are a few other important factors to consider when thinking about investing in commodity ETFs.

- Inflation Hedge: Gold and silver, unlike most other investment options, maintain their value in times of increasing inflation. Gold ETFs have been providing an 82% return in 2025, surpassing fixed deposits during times of rising CPI.

- Lower Costs, More Liquidity. Buying and selling silver FoFs ETFs with an expense ratio of 0.12% is very efficient. Because of high selling and buying volume, price slippage is not an issue.

- Tax In India, there are more favourable taxation options with ETFs than with mutual funds. So, there is no dividend distribution tax.

- World Coverage: Many funds will domestically focus but have some funds that track internationally, which gives insight into global benchmarks. Silver ETFs reported an astonishing 171% one-year return as of February 2026 due to the recovery of the markets after the pandemic, according to Moneycontrol. This justifies the investments made into commodity ETFs, particularly with the ongoing demand for metals to support battery production for electric vehicles and initiatives for sustainable energy.

What are the Gold Silver ETFs?

In India, Gold Silver ETFs offer the easiest way for investors to gain exposure to gold and silver. Gold ETFs buy 99.5% pure gold and then track that gold against the domestic gold prices. The same goes for the silver gold ETFs. These funds are passive because they have to incur minimal management fees and they have to replicate gold and silver prices.

2026 will see a significant increase in investments in gold and silver ETFs because of rising demand for gold due to central banks buying and increased demand for jewellery. India's gold imports in 2025 increased the AUM of gold ETFs, so gold and silver ETFs like Nippon India and ICICI Prudential are preferred for their good tracking and large AUM.

Silver has done especially well recently, with funds such as Tata Silver ETF returning 171.30% in 1 year. This kind of volatility can help provide higher returns, but it is best to mix in some gold for balance and stability. Investors typically use gold and silver ETFs for 10-20% of their portfolio as a safe haven, and this is in line with ETF portfolio strategy principles.

Mining ETF India

While precious metals are important, not all investors extend their options to the metal and mining companies. These are equity-based ETFs (as opposed to pure commodities), meaning there is a leveraged play on metal prices via the producers.

According to Dhan, the Nifty Metal Index, which includes 15 companies such as Vedanta and JSW Steel, has exceeded 49% return in the last year. Funds of Mining ETF India like ICICI Pru Nifty Metal ETF, are able to provide this type of return, as all the funds are replicated to the Index, allowing investors to have exposure to multiple companies in the mining, refining, and production sectors.

Why should you think about Mining ETFs in India in 2026? Mining ETFs are subject to a greater level of risk because of their cyclical nature, with commodity prices dropping, thus resulting in mining ETFs becoming less profitable. 

This, however, captures an element of growth with the addition of pure commodity mining ETFs for more risk-tolerant investors. India's recent infrastructure spending of over 10 lakh crores will increase the demand for metals such as steel, aluminium, and copper, which will positively impact mining ETFs. Investments such as mining ETFs offer in India will become more promising as India increases spending on infrastructure. Global developments like energy transitions also positively impact battery metal mining.

Best 5 Metal ETFs 2026

These metal ETFs are the best for the coming year according to data such as their Assets Under Management, returns, Expenses, and documentation from the markets like Tickertape, Samco and Pocketful as of February 2026. We have also provided a blend of funds with more defensiveness and funds for more aggressiveness.

1. Nippon India ETF Gold BeES

For the best metal ETFs India has, this fund holds more than 43,000 crores in AUM, is one of the oldest in 2007 and has one of the lowest expense ratios of 0.80%. As a gold fund, this ETF closely tracks the Domestic Gold prices with daily liquidity of over 2 crores. Gold is expected to reach a new all-time high in 2026; thus, wealth preservation will be one of the solid reasons for this ETF to be a core ELEMENT of the ETF portfolio.

2. ICICI Pru Nifty Metal ETF

This mining ETF in India uniquely tracks the Nifty Metal Index which gives you a chance to invest in the top performers in metal production. With approximately ₹53 crore in Assets Under Management (AUM) and a one-year return of 49.46%, it is suitable for investors who are looking for growth. Expense ratio: 0.40%. With a focus primarily on industrial metals like steel, the fund will do well as India continues to push for manufacturing. For your ETF portfolio strategy, consider using this fund to gain from cyclical upswings, allocating 15-25% to it for diversification.

3. Nippon India Silver ETF

This fund is among the best gold silver ETFs as it invests in physical silver, giving it ₹169 crore in AUM. It has returned an astonishing 169% in the last year due to the two-fold role of silver as both an industrial and an investment commodity. Expense ratio: 0.56%. Given the bond between silver price and the demand for electric vehicle (EV) which is expected to spike in 2026, this ETF is expected to give you a great return in the near future. Commodities ETF investors should consider balancing with gold for stability which is further reason to invest in this ETF.

4. SBI Gold ETF

SBI Gold ETF is one of the best metal ETF India and is a trusted gold option. It has an immense AUM and 82% one-year returns. Its Expense ratio is approximately 0.65%. Backed by SBI's reliability, it's good for beginner investors. Its 3-year (over 75%) consistent performance makes it a must for ETF portfolio strategy to hedge equity volatility.

5. ICICI Prudential Silver ETF

As our last pick, this gold silver ETF has tracking silver prices of an astounding 169.4% one-year returns and an expense ratio (via FoF structure) of 0.12%. AUM over ₹8,000 crore. It is very liquid, efficient, and a good choice for budget-savvy investors. In 2026, due to the silver industrial recovery, this ETF will be a great addition to the Ex-India Commodity ETFs for a volatility-managed growth.

These picks are made with a focus on diversified exposure: two gold, two silver, and one mining-focused.

Conclusion

Nippon India ETF Gold BeES, ICICI Pru Nifty Metal ETF, Nippon India Silver ETF, SBI Gold ETF, and ICICI Prudential Silver ETF are metal ETFs that could give you growth and also protection for the year 2026. In order to create a long-term commodity ETF strategy with the best metal ETF India, gold silver ETFs, and mining ETFs India options, you can add these ETFs to your portfolio. 

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.