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 13% or less in the alternative indices.

0.65% p.a. - 0.85% p.a.
annual total expense ratio (TER) of India ETFs
on the Indian stock market, which are tracked by ETFs
on the Indian stock market
The best indices for India ETFs

Performance of Indian stocks (MSCI India)

1 month: -8.44%
1 year: -9.41%
3 years: 9.92%
5 years: 21.64%

Indices in comparison

The best indices for ETFs on India

For an investment in the Indian stock market, 2 indices tracked by 5 ETFs are available. 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 0.65% p.a. and 0.85% p.a..

Index Investment focus Number of ETFs Number of constituents Short description

MSCI India

India 4 ETFs 78
(31.03.19)
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 787 0.85% p.a. Accumulating France Unfunded swap
iShares MSCI India UCITS ETF USD (Acc)IE00BZCQB185 209 0.65% p.a. Accumulating Ireland Full replication
Xtrackers Nifty 50 UCITS ETF 1CLU0292109690 123 0.85% p.a. Accumulating Luxembourg Unfunded swap
Amundi MSCI India UCITS ETF - EUR (C)LU1681043086 117 0.80% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI India Index UCITS ETF 1CLU0514695187 108 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 -3.16% -5.05% 6.37% -0.72% 15.84%
Nifty 50 -3.37% -3.71% 9.04% 1.77% 22.48%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
MSCI India 3.77% -4.21% 19.90% -0.07% 2.66%
Nifty 50 6.65% -2.46% 19.91% 3.25% 1.13%

Source: justETF.com; As of 31.07.19; 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 8 ETFs. Unfortunately, India is weighed even less with under 13% 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: 10.36%
(31/03/2019)
3 ETFs 955
(31.03.19)
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: 12.31%
(31/03/2019)
5 ETFs 883
(31.03.19)
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 956 0.20% p.a. Accumulating Luxembourg Unfunded swap
SPDR MSCI EM Asia UCITS ETFIE00B466KX20 584 0.55% p.a. Accumulating Ireland Optimized sampling
iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 494 0.65% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI EM Asia Index Swap UCITS ETF 1CLU0292107991 485 0.65% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI AC Asia ex Japan Index Swap UCITS ETF 1CLU0322252171 433 0.65% p.a. Accumulating Luxembourg Unfunded swap
Lyxor MSCI AC Asia Ex Japan UCITS ETF AccLU1900068161 263 0.50% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 99 0.32% p.a. Accumulating Ireland Swap-based
Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 54 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 Emerging Markets Asia 0.63% -4.04% 2.40% -0.11% 27.77%
MSCI AC Asia ex Japan 0.21% -3.81% 4.10% 1.44% 27.17%
Index   2019
in %
2018
in %
2017
in %
2016
in %
2015
in %
MSCI Emerging Markets Asia 10.58% -11.64% 24.79% 8.79% -0.05%
MSCI AC Asia ex Japan 11.83% -11.47% 24.22% 8.07% 0.45%

Source: justETF.com; As of 31.07.19; Calculations in EUR based on the largest ETF of the respective index.