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: 8.52%
1 year: -13.18%
3 years: -
5 years: -

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 86
(30/06/20)
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 312 0.65% p.a. Accumulating Ireland Optimized sampling
Lyxor MSCI India UCITS ETF - Acc (USD)FR0010375766 96 0.85% p.a. Accumulating France Unfunded swap
Xtrackers Nifty 50 Swap UCITS ETF 1CLU0292109690 88 0.85% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI India Swap UCITS ETF 1CLU0514695187 63 0.75% p.a. Accumulating Luxembourg Unfunded swap
Amundi ETF MSCI India UCITS ETF USDLU1681043169 14 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 8.37% 25.62% -15.52% -18.24% -4.47%
MSCI India 7.60% 26.90% -11.96% -14.62% -
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
Nifty 50 -14.85% 4.65% -0.95% 24.50% 20.45%
MSCI India -11.75% 3.51% - - -

Source: justETF.com; As of 30/06/20; Calculations in GBP based on the largest ETF of the respective index.

 

The cheapest India ETFs
by total expense ratio (TER)

Show all

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 7 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: 10.15%
(31/12/2019)
2 ETFs 1,182
(30/06/20)
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: 11.72%
(31/12/2019)
5 ETFs 1,120
(30/06/20)
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
SPDR MSCI EM Asia UCITS ETFIE00B466KX20 724 0.55% p.a. Accumulating Ireland Optimized sampling
iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 597 0.65% p.a. Accumulating Ireland Optimized sampling
Amundi ETF MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 576 0.20% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI AC Asia ex Japan Swap UCITS ETF 1CLU0322252171 444 0.65% p.a. Accumulating Luxembourg Unfunded swap
Xtrackers MSCI EM Asia Swap UCITS ETF 1CLU0292107991 416 0.65% p.a. Accumulating Luxembourg Unfunded swap
UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 125 0.23% p.a. Accumulating Ireland Swap-based
Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 71 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 9.08% 20.33% 1.06% 4.37% 15.39%
MSCI Emerging Markets Asia 9.03% 21.64% 2.71% 7.88% 17.45%
Index   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
MSCI AC Asia ex Japan 1.77% 13.39% -10.09% 28.95% 26.11%
MSCI Emerging Markets Asia 3.10% 14.63% -11.04% 29.62% 27.67%

Source: justETF.com; As of 30/06/20; Calculations in GBP based on the largest ETF of the respective index.