5 Best Indian ETFs to Buy for Q3 2023
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9/1082% of retail CFD accounts lose money.
India is one of the world’s largest emerging markets with a strong, growing economy. Investing in ETFs is the easiest way to capitalise on future growth and in this guide, we compare the best Indian ETFs to invest in right now.
What are the top Indian ETFs to buy?
Copy link to section| # | ETF Name | Get started |
|---|---|---|
| 1 | First Trust India NIFTY 50 Equal Weight ETF | Invest now 77% of retail CFD accounts lose money. |
| 2 | Columbia India Consumer ETF | Invest now 77% of retail CFD accounts lose money. |
| 3 | iShares MSCI India Small-Cap ETF | Invest now 77% of retail CFD accounts lose money. |
| 4 | VanEck Digital India ETF | Invest now 77% of retail CFD accounts lose money. |
| 5 | Nifty India Financials ETF | Invest now 77% of retail CFD accounts lose money. |
1. First Trust India NIFTY 50 Equal Weight ETF (NASDAQ: NFTY)
Copy link to sectionThe First Trust India NIFTY 50 Equal Weight ETF is regarded as one of the top Indian ETFs available and exposes investors to the Indian equity market. NFTY tracks the NIFTY 50 Equal Weight Index, which consists of 50 Indian companies listed on the National Stock Exchange of India (NSE).
NFTY includes various holdings, including well-known companies like Reliance Industries, Infosys, and Housing Development Finance Corporation. The ETF uses an equal-weighting approach which means each company has the same impact on its overall performance resulting in a balanced representation across different sectors.
With its diversified portfolio and equal-weighting methodology, it provides exposure to a broad range of Indian companies while mitigating concentration risks. By investing in the NFTY ETF, investors can capitalise on India’s economic growth potential and benefit from a well-rounded investment in one of the best India ETFs available.
77% of retail CFD accounts lose money.
2. Columbia India Consumer ETF (NYSEARCA: INCO)
Copy link to sectionThe Columbia India Consumer ETF gives investors access to the Indian consumer sector. INCO tracks the performance of the Indxx India Consumer Index, which includes companies operating in retail, media, healthcare, and consumer goods industries.
INCO offers a diverse portfolio of Indian consumer-focused companies, with holdings such as Hindustan Unilever, Titan Company, and Maruti Suzuki India. The ETF ensures well-balanced exposure to different sectors within the Indian consumer market, contributing to its diversification.
With a significant focus on consumer discretionary, consumer staples, and healthcare sectors, INCO effectively manages concentration risks and allows investors to capitalise on India’s growing consumer-driven economy.
77% of retail CFD accounts lose money.
3. iShares MSCI India Small-Cap ETF (NYSEARCA: SMIN)
Copy link to sectionThird place on our best Indian ETFs for 2023 is the iShares MSCI India Small-Cap. This ETF tracks the performance of the MSCI India Small Cap Index, which includes small-cap companies in India, offering investors access to the small-cap segment of the Indian equity market.
SMIN is comprised of some of India’s most promising small publicly traded companies, including VIP Industries Ltd, Future Retail Ltd, and Cholamandalam Investment and Finance Company Ltd. With its portfolio composition, the ETF offers diversification within the small-cap space and covers various sectors such as consumer discretionary, financials, and industrials.
The iShares MSCI India Small-Cap ETF has a well-balanced sector weighting meaning investors can benefit from the growth potential of different industries within India’s small-cap segment. By investing in the iShares MSCI India Small-Cap ETF, investors can gain exposure to the dynamic small-cap sector of the Indian equity market and diversify their portfolios, making it one of the best Indian ETFs available for long-term growth potential.
77% of retail CFD accounts lose money.
4. VanEck Digital India ETF (NYSEARCA: DGIN)
Copy link to sectionAs its name suggests, the VanEck Digital India ETF provides investors with exposure to India’s digital economy. The ETF aims to track the MVIS India Digital Transformation Index’s performance, which comprises companies operating in sectors such as e-commerce, digital payments, and technology services.
DGIN invests in a diverse range of companies that are at the forefront of India’s digital revolution. Some of its best-known holdings include Infosys, Tata Consultancy Services, and HCL Technologies. It ensures diversification by allocating investments across various sectors, including information technology, consumer discretionary, and communication services.
With its strategic sector weighting, the VanEck Digital India ETF allows investors to participate in the growth potential of different industries within India’s digital economy. As India continues to embrace digital transformation and rapid technological advancements, DGIN looks well placed to capitalise on future growth.
77% of retail CFD accounts lose money.
5. Nifty India Financials ETF (NYSEARCA: INDF)
Copy link to sectionThe Nifty India Financials ETF is one of the best funds for gaining exposure to the Indian financial sector. It aims to closely track the performance of the Nifty Financial Services Index, which comprises some of India’s leading financial institutions and companies.
This ETF offers a diversified portfolio of various Indian financial firms, including names in banking, insurance, and non-banking financial services. Some of its significant holdings include HDFC Bank, ICICI Bank, and Bajaj Finance. Investing in the ETF allows investors to access a broad range of financial companies, ensuring diversification within the sector.
The Nifty India Financials ETF allows investors to tap into the growth potential of India’s robust financial industry. India’s financial sector has experienced substantial growth in recent years, fueled by increasing consumer spending and expanding banking services. Investing in Nifty India Financials allows investors to participate in this growth trajectory, making it a top choice for anyone seeking the best Indian ETFs in the financial sector.
77% of retail CFD accounts lose money.
Where to buy the best Indian ETFs
Copy link to sectionYou can buy any ETFs on our list using the brokers below. Our experts have selected these platforms; they are the best options for beginners and experienced investors. Click on any of the links below to open an account in just a few minutes.
77% of retail CFD accounts lose money.
What is an Indian ETF?
Copy link to sectionIt’s an exchange traded fund that aims to replicate or track the performance of a specific sector of the Indian economy. ETFs are traded on stock exchanges and provide investors with a convenient way to gain exposure to a diversified portfolio of Indian stocks. By investing in the best Indian ETFs, investors can access the growth potential of companies and sectors without buying individual stocks directly.
Are Indian ETFs a good investment?
Copy link to sectionYes, Indian ETFs can be a good investment choice and are especially useful for investors wanting to diversify their portfolios by investing in the Indian market. India has a strong economy that is in a growth phase and the best Indian ETFs can make it easy to capitalise on any future growth.
Indian ETFs offer a convenient way for investors to tap into this potential, as they provide exposure to a broad range of Indian companies and sectors within a single investment. By spreading investments across multiple stocks, these ETFs help mitigate the risks associated with individual companies, making them a good option for those seeking diversification without extensive research or stock selection.
Like other emerging markets, things can change quickly, so staying updated with the latest news and market developments is a good idea. You can use any of the links below to read the most current news from industry experts. You’ll also need to use a broker that offers the best Indian ETFs and you can click the blue button to find the right platform for you.
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