How to invest in India using ETFs
How do I invest in Indian stocks?
The easiest way to invest in the whole Indian stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the Indian stock market you'll find 3 indices which are tracked by ETFs. Besides these indices, 1 alternative index is available.
As further alternative, you may invest in indices on Asia or emerging markets.
Performance of Indian stocks (MSCI India)
1 month: 2.96%
1 year: 32.95%
3 years: 52.51%
5 years: 75.41%
Indices in comparison
The best indices for ETFs on India
For an investment in the Indian stock market, there are 3 indices available which are tracked by 6 ETFs. On the FTSE India 30/18 Capped index there is 1 ETF. On the MSCI India index there are 4 ETFs. On the Nifty 50 index there is 1 ETF. The total expense ratio (TER) of ETFs on these indices is between 0.19% p.a. and 0.85% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
FTSE India 30/18 Capped | India | 1 ETF | 213 (29/02/2024) | The FTSE India 30/18 Capped index tracks Indian companies with large and medium market capitalisation. The largest company in the index is limited to a maximum of 30 percent of the index capitalization, all other index components to a maximum of 18 percent. Index factsheet |
MSCI India | India | 4 ETFs | 146 (28/06/2024) | The MSCI India index tracks the leading Indian stocks. Index factsheet |
Nifty 50 | India | 1 ETF | 50 | The Nifty 50 index tracks 50 stocks from 22 sectors of the Indian economy. Index factsheet |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI India UCITS ETF USD (Acc)IE00BZCQB185 | 4,408 | 0.65% p.a. | Accumulating | Ireland | Optimized sampling | |
| Franklin FTSE India UCITS ETFIE00BHZRQZ17 | 759 | 0.19% p.a. | Accumulating | Ireland | Full replication | |
| Amundi MSCI India II UCITS ETF USD AccFR0010375766 | 264 | 0.85% p.a. | Accumulating | France | Unfunded swap | |
| Xtrackers Nifty 50 Swap UCITS ETF 1CLU0292109690 | 181 | 0.85% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI India Swap UCITS ETF 1CLU0514695187 | 151 | 0.19% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI India UCITS ETF USDLU1681043169 | 49 | 0.80% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| Nifty 50 | 7.36% | 7.08% | 10.79% | 22.86% | 47.59% | |
| MSCI India | 7.20% | 9.13% | 17.06% | 33.05% | 56.24% | |
| FTSE India 30/18 Capped | 6.85% | 8.90% | 16.28% | 33.96% | 57.43% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| Nifty 50 | 10.79% | 12.40% | 4.83% | 23.00% | 7.67% | |
| FTSE India 30/18 Capped | 16.28% | 15.76% | 3.22% | 26.44% | 8.87% | |
| MSCI India | 17.06% | 13.09% | 2.58% | 26.58% | 11.14% |
Source: justETF.com; As of 30/06/2024; Calculations in GBP based on the largest ETF of the respective index.
The best India ETFs
by 1 year return
| 1 | Franklin FTSE India UCITS ETF | 33.96% |
| 2 | Xtrackers MSCI India Swap UCITS ETF 1C | 33.10% |
| 3 | iShares MSCI India UCITS ETF USD (Acc) | 33.05% |
The cheapest India ETFs
by total expense ratio (TER)
| 1 | Franklin FTSE India UCITS ETF | 0.19% p.a. |
| 2 | Xtrackers MSCI India Swap UCITS ETF 1C | 0.19% p.a. |
| 3 | iShares MSCI India UCITS ETF USD (Acc) | 0.65% p.a. |
Alternative investment opportunities
India indices with a sector or thematic focus
Alternatively, you can consider indices on specific sectors or investment themes. In total you can invest in 1 alternative index on India tracked by 1 ETF. The total expense ratio (TER) of ETFs on these alternative indices is around 0.65% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| S&P India Tech | India Technology | 1 ETF | The S&P India Tech index tracks the Indian technology sector. |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| HSBC S&P India Tech UCITS ETF EUR (Acc)IE0008119MO8 | - | 0.65% p.a. | Accumulating | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| S&P India Tech | 10.85% | 6.98% | - | - | - |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| S&P India Tech | - | - | - | - | - |
Source: justETF.com; As of 30/06/2024; Calculations in GBP based on the largest ETF of the respective index.
Emerging markets indices with a share of India
Besides India ETFs you may consider ETFs on emerging markets. In total, you can consider 2 emerging markets indices tracked by 20 ETFs. The total expense ratio (TER) of ETFs on emerging markets indices is between 0.14% p.a. and 0.55% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| FTSE Emerging | Emerging Markets India: 17.98% (30/11/2022) | 2 ETFs | 2,219 (28/06/2024) | The FTSE Emerging index tracks stocks from emerging markets worldwide. Index factsheet |
| MSCI Emerging Markets | Emerging Markets India: 14.85% (30/11/2022) | 18 ETFs | 1,330 (28/06/2024) | The MSCI Emerging Markets index tracks stocks from emerging markets worldwide. Index factsheet |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 | 4,468 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,763 | 0.18% p.a. | Distributing | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 2,568 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 | 2,571 | 0.18% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 1,942 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 | 1,862 | 0.22% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 | 1,443 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,301 | 0.18% p.a. | Distributing | Luxembourg | Optimized sampling | |
| Amundi MSCI Emerging Markets II UCITS ETF AccLU2573967036 | 1,240 | 0.14% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 | 733 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 553 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 494 | 0.18% p.a. | Accumulating | Ireland | Full replication | |
| Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 | 460 | 0.22% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 | 422 | 0.18% p.a. | Distributing | Luxembourg | Full replication | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 291 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 | 199 | 0.15% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI Emerging Markets UCITS ETF 1DIE000GWA2J58 | 171 | 0.18% p.a. | Distributing | Ireland | Full replication | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR - USD (D)LU2277591868 | 138 | 0.18% p.a. | Distributing | Luxembourg | Full replication | |
| Amundi MSCI Emerging Markets III UCITS ETF USD AccFR0010435297 | 90 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1DLU2675291913 | 57 | 0.18% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| FTSE Emerging | 2.59% | 5.39% | 8.41% | 12.54% | -3.23% | |
| MSCI Emerging Markets | 3.52% | 4.75% | 8.10% | 12.56% | -6.77% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | 8.10% | 3.61% | -10.57% | -1.50% | 14.15% | |
| FTSE Emerging | 8.41% | 2.02% | -7.55% | 0.58% | 10.95% |
Source: justETF.com; As of 30/06/2024; Calculations in GBP based on the largest ETF of the respective index.
Asia indices with a share of India
Alternatively, you may consider investing in Asia. In total, you can invest in 3 indices on Asia tracked by 7 ETFs. The total expense ratio (TER) of ETFs on Asia is between 0.12% p.a. and 0.60% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI AC Asia Pacific ex Japan | Asia Pacific India: 13.98% (30/11/2022) | 1 ETF | 1,194 (28/06/2024) | The MSCI AC Asia Pacific ex Japan index tracks equity markets of the emerging and developed countries of the Asia and Pacific region, excluding Japan. Index factsheet |
| MSCI AC Asia ex Japan | Asia Pacific India: 16.92% (30/11/2022) | 2 ETFs | 1,131 (28/06/2024) | The MSCI AC Asia ex Japan index tracks equity markets of the emerging and developed countries of the Asia region, excluding Japan. Index factsheet |
| MSCI Emerging Markets Asia | Asia Pacific India: 19.02% (30/11/2022) | 4 ETFs | 1,087 (28/06/2024) | The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets. Index factsheet |
| ETF ISIN | Fund size in m GBP | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 2,104 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 706 | 0.55% p.a. | Accumulating | Ireland | Full replication | |
| Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 | 501 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI AC Asia Pacific Ex Japan UCITS ETF AccLU1900068328 | 314 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 236 | 0.23% p.a. | Accumulating | Ireland | Swap-based | |
| Amundi MSCI AC Asia Ex Japan UCITS ETF AccLU1900068161 | 202 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI Emerging Asia II UCITS ETF AccLU1781541849 | 178 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI AC Asia Pacific ex Japan | 3.92% | 5.97% | 8.56% | 12.70% | -6.53% | |
| MSCI AC Asia ex Japan | 3.90% | 7.00% | 10.28% | 12.87% | -8.90% | |
| MSCI Emerging Markets Asia | 4.52% | 8.03% | 11.54% | 14.97% | -7.56% |
| Index | 2024 in % | 2023 in % | 2022 in % | 2021 in % | 2020 in % | |
|---|---|---|---|---|---|---|
| MSCI AC Asia Pacific ex Japan | 8.56% | 0.89% | -7.77% | -3.00% | 17.82% | |
| MSCI AC Asia ex Japan | 10.28% | 0.06% | -10.16% | -3.78% | 20.35% | |
| MSCI Emerging Markets Asia | 11.54% | 1.75% | -10.37% | -5.16% | 23.42% |
Source: justETF.com; As of 30/06/2024; Calculations in GBP based on the largest ETF of the respective index.