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 find 2 indices, which are tracked by ETFs.
Alternatively, you can consider indices on the BRIC countries and Asia. However, India is only weighted with 20% or less in the alternative indices.
Performance of Indian stocks (MSCI India)
Indices in comparison
The best indices for ETFs on India
For an investment in the Indian stock market, 2 indices tracked by 4 ETFs are available. On the MSCI India index there are 3 ETFs. On the Nifty 50 index there is 1 ETF. The total expense ratio (TER) of ETFs on these indices is between 0.75% p.a. and 0.85% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
MSCI India |
India | 3 ETFs | 79 (29/12/17) |
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 EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Lyxor MSCI India UCITS ETF C-EURFR0010361683 | 1,090 | 0.85% p.a. | Accumulating | France | Unfunded swap | |
| Amundi MSCI India UCITS ETF - EUR (C)LU1681043086 | 165 | 0.80% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers Nifty 50 UCITS ETF 1CLU0292109690 | 165 | 0.85% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI India Index UCITS ETF 1CLU0514695187 | 134 | 0.75% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI India | -0.31% | 0.70% | -0.75% | 1.08% | 5.80% | |
| Nifty 50 | 2.10% | 3.02% | 1.26% | 1.99% | 11.18% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI India | -4.57% | 19.90% | -0.07% | 2.66% | 39.53% | |
| Nifty 50 | -1.58% | 19.91% | 3.25% | 1.13% | 46.04% |
Source: justETF.com; As of 31/05/18; Calculations in EUR based on the largest ETF of the respective index.
The best India ETFs
by 1 year return
| 1 | Xtrackers Nifty 50 UCITS ETF 1C | 1.99% |
| 2 | Amundi MSCI India UCITS ETF - EUR (C) | 1.10% |
| 3 | Lyxor MSCI India UCITS ETF C-EUR | 1.08% |
The cheapest India ETFs
by total expense ratio (TER)
| 1 | Xtrackers MSCI India Index UCITS ETF 1C | 0.75% p.a. |
| 2 | Amundi MSCI India UCITS ETF - EUR (C) | 0.80% p.a. |
| 3 | Lyxor MSCI India UCITS ETF C-EUR | 0.85% p.a. |
Regional indices on Brazil, Russia, India and China (BRIC)
Besides India ETFs you may consider ETFs on the BRIC countries. In total, you can invest in 2 BRIC indices tracked by 2 ETFs. However, India is weighted with 20% or less in the BRIC indices. The total expense ratio (TER) of ETFs on BRIC countries is between 0.65% p.a. and 0.74% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| DAXglobal® BRIC | Emerging Markets
India: 21,73% (29/12/2017) |
1 ETF | 40 |
The DAXglobal BRIC index tracks the 40 largest and most traded stocks from Brazil, Russia, India and China. The Index contains 10 stocks from each of these countries. |
| FTSE BRIC 50 | Emerging Markets
India: 5,19% (29/12/2017) |
1 ETF | 50 |
The FTSE BRIC 50 index tracks the 50 largest stocks of the BRIC countries (Brazil, Russia, India, China).
Index factsheet |
| ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares BRIC 50 UCITS ETFIE00B1W57M07 | 251 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Market Access DAXglobal BRIC UCITS ETFLU0269999792 | 14 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| DAXglobal® BRIC | -1.73% | -4.10% | 3.57% | 7.34% | 4.74% | |
| FTSE BRIC 50 | -0.04% | -1.92% | 5.81% | 18.26% | 16.91% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| DAXglobal® BRIC | 0.44% | 5.31% | 25.67% | -4.13% | 3.23% | |
| FTSE BRIC 50 | 3.74% | 19.63% | 19.70% | -1.95% | 8.97% |
Source: justETF.com; As of 31/05/18; Calculations in EUR based on the largest ETF of the respective index.
Asian indices with a share of India
Alternatively, you may consider investing in Asia. In total, you can invest in 2 Asian indices tracked by 2 ETFs. Unfortunately, India is weighed even less with under 15% in the Asian indices. The total expense ratio (TER) of ETFs on Asia is between 0.12% p.a. and 0.65% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI AC Asia ex Japan | Asia Pacific
India: 10.11% (29/12/2017) |
3 ETFs | 647 (29/12/17) |
The MSCI AC (All Cap) 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: 11.99% (29/12/2017) |
5 ETFs | 572 (29/12/17) |
The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets.
Index factsheet |
| ETF ISIN |
Fund size in m EUR |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Amundi MSCI Emerging Markets Asia UCITS ETF - EUR (C)LU1681044480 | 1,431 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI EM Asia Index Swap UCITS ETF 1CLU0292107991 | 670 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI AC Asia ex Japan Index Swap UCITS ETF 1CLU0322252171 | 543 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 493 | 0.65% p.a. | Accumulating | Ireland | Optimized sampling | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 400 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI AC Asia Ex Japan UCITS ETF C-EURFR0010652867 | 399 | 0.50% p.a. | Accumulating | France | Unfunded swap | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 127 | 0.32% p.a. | Accumulating | Ireland | Swap-based | |
| Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 | 11 | 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 ex Japan | 1.83% | 2.04% | 3.78% | 11.90% | 13.94% | |
| MSCI Emerging Markets Asia | 2.09% | 1.67% | 4.30% | 12.60% | 15.07% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI AC Asia ex Japan | 2.09% | 24.22% | 8.07% | 0.45% | 18.00% | |
| MSCI Emerging Markets Asia | 2.23% | 24.79% | 8.79% | -0.05% | 18.76% |
Source: justETF.com; As of 31/05/18; Calculations in EUR based on the largest ETF of the respective index.