India’s exchange-traded fund (ETF) market just achieved a new milestone. Zerodha Fund House reports that assets under management (AUM) have surpassed ₹10 lakh crore, indicating that ETFs have become a popular investment option.

Data released by Zerodha Fund House demonstrates how swiftly this transition has occurred. The size of India’s ETF market has doubled in the previous three years, indicating a consistent trend in investor preference for transparent, low-cost, and easily accessible investment classes. Today’s ETFs provide exposure to stock, debt, commodities, and theme strategies, allowing investors to diversify without relying solely on traditional funds.

Gold and Silver ETFs in a Growing Ecosystem

Within this expanding world, commodities ETFs—particularly those connected to gold and silver—play a key role in the overall product mix. While Zerodha Fund House did not provide a specific numerical breakdown for precious metal ETFs, it did note that ETFs now provide investors with exposure to several asset classes, allowing them to diversify beyond equities.

Gold ETFs were among the first non-equity ETF categories issued in India, helping to familiarize investors with the ETF structure. Silver ETFs, which were created subsequently, have expanded the number of commodity-based investment possibilities available via the ETF approach.

According to Vaibhav Jalan, Chief Business Officer at Zerodha Fund House, ETFs provide a convenient entry point into many asset classes. “For new investors, ETFs operate as a versatile instrument to take exposure to diverse asset classes, themes, and segments as they are simple, cost-effective and clear in their structure,” he explained.”

Participation and Liquidity Drive ETF Expansion

The substantial increase in investor involvement has been a primary driver of ETF AUM growth. According to Zerodha Fund House data, the number of ETF investor accounts increased from over 41 lakh in November 2020 to over 3 crore in November 2025, signifying a more than eightfold growth in five years. This spike implies that regular investors, as well as institutions, are increasingly using ETFs.

Liquidity has also improved dramatically. ETF trading volumes increased from ₹51,000 crore in FY20 to ₹3.83 lakh crore in FY25, a more than sevenfold increase. Momentum has carried over into this year as well. In the first half of FY26, ETF trading volumes reached ₹3.2 lakh crore, virtually equal the previous year’s amount. This development has resulted in better price discovery and smoother execution for investors.

Vishal Jain, CEO of Zerodha Fund House, described the milestone as a reflection of the ecosystem’s development. Crossing the ₹10 lakh crore AUM level is a significant milestone for the Indian ETF market. “Having launched India’s first ETFs in equity, gold, liquid, and government divestment categories, it is rewarding to see the product mature and gain such widespread adoption,” he added.

According to Zerodha Fund House, ETFs are increasingly employed not only for long-term investing but also for tactical asset allocation, owing to increased liquidity and tighter tracking of underlying indices.

A Market That Has Come of Age

Zerodha Fund House stated that the quick increase in ETF AUM signals a deeper move toward passive investing, disciplined asset allocation, and long-term planning. Retail and institutional investors have both contributed to this expansion, as have policy-driven measures such as government divestments through ETFs.

While equities remain the largest component, the increasing presence of debt and commodity ETFs, such as gold and silver, helps to balance the ecosystem. Zerodha Fund House feels that with ETF AUM over ₹10 lakh crore, the industry has matured enough to play a key role in portfolio diversification, market access, and long-term wealth generation for Indian investors.