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.

0.75% p.a. - 0.85% p.a.
annual total expense ratio (TER) of India ETFs
on the Indian stock market, which is tracked by ETFs
on the Indian stock market
The best indices for India ETFs

Performance of Indian stocks (MSCI India)

1 month: -11.02%
1 year: 17.38%
3 years: 45.83%
5 years: 45.83%

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 74
(31/10/16)
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
db x-trackers Nifty 50 UCITS ETF 1CLU0292109690 159 0.85% p.a. Accumulating Luxembourg Unfunded swap
Lyxor UCITS ETF MSCI India C-USDFR0010375766 123 0.85% p.a. Accumulating France Unfunded swap
db x-trackers MSCI India Index UCITS ETF 1CLU0514695187 81 0.75% p.a. Accumulating Luxembourg Unfunded swap
Amundi ETF MSCI India UCITS ETF USDFR0010869784 9 0.80% p.a. Accumulating France Unfunded swap
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI India -10.41% -4.72% 13.81% 19.14% 47.73%
Nifty 50 -8.25% -1.87% 17.68% 22.71% 59.38%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI India 15.04% -3.05% 29.83% -7.13% 19.34%
Nifty 50 20.41% -4.70% 36.42% -7.61% 19.02%

Source: justETF.com; As of 30/11/16; Calculations in GBP based on the largest ETF of the respective index.

 

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 1 BRIC index tracked by 1 ETF. However, India is weighted with 20% or less in the BRIC indices. The total expense ratio (TER) of ETFs on BRIC countries is around 0.74% p.a..

 
Index Investment focus Number of ETFs Number of constituents Short description
FTSE BRIC 50 Emerging Markets
India: 10.64%
(31/10/2016)
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 GBP
TER
in %
Use of profits Fund domicile Replication method
iShares BRIC 50 UCITS ETFIE00B1W57M07 215 0.74% p.a. Distributing Ireland Full replication
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
FTSE BRIC 50 -3.68% 4.85% 34.27% 36.92% 25.44%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
FTSE BRIC 50 39.27% -7.47% 1.87% -5.56% 6.99%

Source: justETF.com; As of 30/11/16; Calculations in GBP 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 1 Asian index tracked by 1 ETF. Unfortunately, India is weighed even less with under 15% in the Asian indices. The total expense ratio (TER) of ETFs on Asia is between 0.20% 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: 9.99%
(31/10/2016)
1 ETF 622
(31/10/16)
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: 12.00%
(31/10/2016)
5 ETFs 550
(31/10/16)
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
Amundi ETF MSCI EM Asia UCITS ETF EURFR0011020965 564 0.20% p.a. Accumulating France Unfunded swap
db x-trackers MSCI EM Asia Index UCITS ETF 1CLU0292107991 480 0.65% p.a. Accumulating Luxembourg Unfunded swap
db x-trackers MSCI AC Asia ex Japan Index UCITS ETF 1CLU0322252171 394 0.65% p.a. Accumulating Luxembourg Unfunded swap
Amundi ETF MSCI EM Asia UCITS ETF USDFR0011018316 235 0.20% p.a. Accumulating France Unfunded swap
SPDR MSCI EM Asia UCITS ETFIE00B466KX20 214 0.55% p.a. Accumulating Ireland Optimized sampling
iShares MSCI EM Asia UCITS ETFIE00B5L8K969 171 0.65% p.a. Accumulating Ireland Optimized sampling
 
Index   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
MSCI Emerging Markets Asia -5.39% 1.41% 27.74% 28.31% 30.30%
MSCI AC Asia ex Japan -5.19% 2.20% 27.50% 28.52% 30.17%
Index   2016
in %
2015
in %
2014
in %
2013
in %
2012
in %
MSCI Emerging Markets Asia 27.74% -5.79% 10.92% -1.11% 15.50%
MSCI AC Asia ex Japan 27.74% -5.38% 10.26% -0.24% 16.11%

Source: justETF.com; As of 30/11/16; Calculations in GBP based on the largest ETF of the respective index.