How to Invest in Global ETFs from India? Best Options Available
Investing in Global Exchange-Traded Funds (ETFs) allows Indian investors to gain exposure to international markets like the U.S., Europe, China, Japan, and emerging economies. With increasing globalization, international ETFs help diversify portfolios, hedge against domestic market risks, and capitalize on global growth opportunities.
This guide explains how to invest in global ETFs from India, their benefits, risks, and the best available options.
What Are Global ETFs?
A Global ETF is an exchange-traded fund that tracks a foreign market index or a sector across different countries. It enables investors to buy shares of a fund that holds multiple international stocks without needing to invest directly in foreign markets.
🔹 Example: If you invest in a NASDAQ 100 ETF, you get exposure to top U.S. tech giants like Apple, Amazon, Microsoft, and Google.
Key Features of Global ETFs:
✅ Exposure to Global Markets – Invest in economies beyond India, such as the U.S., China, and Europe.
✅ Diversification – Reduces risk by spreading investments across different markets.
✅ Hedge Against Rupee Depreciation – If the Indian Rupee weakens against the U.S. Dollar, global ETFs provide a natural hedge.
✅ Access to Leading Companies – Invest in companies like Tesla, Facebook, and Nvidia without opening a foreign trading account.
✅ High Liquidity – Can be bought and sold like regular stocks on exchanges.
How to Invest in Global ETFs from India?
There are two main ways to invest in global ETFs from India:
1️⃣ Investing in International ETFs Listed in India
Several international ETFs are already listed on the NSE and BSE, allowing Indian investors to buy them directly through their Demat and trading account.
📌 Steps to Invest in Indian-listed Global ETFs:
- Open a Demat and trading account with a stockbroker like Zerodha, Groww, Upstox, ICICI Direct, HDFC Securities, or Angel One.
- Search for global ETFs listed on NSE/BSE.
- Place an order just like buying a stock.
- The ETF units will be credited to your Demat account upon execution.
2️⃣ Investing in U.S. or Global ETFs Directly via Foreign Brokers
To invest in ETFs listed on foreign exchanges (like NYSE, NASDAQ, LSE), Indian investors can use foreign brokerage platforms under the Liberalized Remittance Scheme (LRS) of the RBI, which allows investments up to $250,000 per year.
📌 Steps to Invest in Foreign ETFs:
- Open an account with a foreign brokerage like Interactive Brokers, Vested, INDmoney, or Stockal.
- Complete the KYC verification and fund your account in USD.
- Select an ETF from the NYSE/NASDAQ, like SPDR S&P 500 (SPY) or Invesco QQQ (QQQ).
- Place an order and track your investments from India.
Best International ETFs Available for Indian Investors
A. Global ETFs Listed in India (Available on NSE/BSE)
| ETF Name | Tracks | Expense Ratio | 1-Year Return |
|---|---|---|---|
| Motilal Oswal NASDAQ 100 ETF | NASDAQ-100 (Top U.S. tech stocks) | ~0.54% | ~42.8% |
| Mirae Asset NYSE FANG+ ETF | NYSE FANG+ Index (Facebook, Amazon, Netflix, Google, etc.) | ~0.33% | ~46.2% |
| Nippon India ETF Hang Seng BeES | Hang Seng Index (Hong Kong) | ~0.80% | ~12.5% |
| Motilal Oswal S&P 500 Index ETF | S&P 500 (Top 500 U.S. companies) | ~0.49% | ~28.4% |
| Mirae Asset Hang Seng TECH ETF | Hang Seng TECH Index (Top 30 China tech stocks) | ~0.68% | ~18.2% |
📌 Key Takeaway:
- Best for U.S. Tech Exposure: Motilal Oswal NASDAQ 100 ETF & Mirae Asset NYSE FANG+ ETF.
- Best for Broad U.S. Market Exposure: Motilal Oswal S&P 500 Index ETF.
- Best for China/Hong Kong Exposure: Nippon India ETF Hang Seng BeES & Mirae Asset Hang Seng TECH ETF.
B. Top U.S./Global ETFs (Available via Foreign Brokers)
| ETF Name | Tracks | Expense Ratio | 1-Year Return |
|---|---|---|---|
| SPDR S&P 500 ETF (SPY) | S&P 500 Index (Top 500 U.S. companies) | 0.09% | ~25.6% |
| Invesco QQQ ETF (QQQ) | NASDAQ-100 (U.S. tech companies) | 0.20% | ~41.2% |
| Vanguard Total Stock Market ETF (VTI) | Total U.S. stock market | 0.03% | ~24.1% |
| iShares MSCI Emerging Markets ETF (EEM) | Emerging market equities | 0.68% | ~9.4% |
| iShares China Large-Cap ETF (FXI) | Chinese stock market | 0.74% | ~12.8% |
📌 Key Takeaway:
- Best for Broad U.S. Market Exposure: SPDR S&P 500 ETF (SPY) & Vanguard Total Stock Market ETF (VTI).
- Best for High-Growth Tech Stocks: Invesco QQQ ETF (QQQ).
- Best for Emerging Markets: iShares MSCI Emerging Markets ETF (EEM).
- Best for China Exposure: iShares China Large-Cap ETF (FXI).
Taxation on Global ETFs for Indian Investors
A. Tax on Indian-Listed International ETFs
- Short-Term Capital Gains (STCG) (if sold within 3 years): Taxed at 15%.
- Long-Term Capital Gains (LTCG) (if held for more than 3 years): Taxed at 10% beyond ₹1 lakh.
B. Tax on Foreign-Listed ETFs (U.S. ETFs)
- Dividend Tax: Withholding tax of 25-30% in the U.S. (can be claimed under DTAA).
- Capital Gains Tax: As per Indian tax slabs; no indexation benefits.
📌 Tax Planning Tip:
Investing through Indian-listed international ETFs is more tax-efficient than direct foreign ETFs, as they do not attract foreign dividend tax.
Final Thoughts: Should You Invest in Global ETFs?
✅ You SHOULD Invest in Global ETFs if you:
✔️ Want to diversify beyond Indian markets and reduce country-specific risks.
✔️ Seek exposure to top U.S. tech giants like Apple, Google, and Microsoft.
✔️ Prefer a passive, low-cost investment strategy.
✔️ Want to hedge against INR depreciation (since global ETFs are priced in foreign currency).
❌ You SHOULD AVOID Global ETFs if you:
❌ Are not comfortable with foreign exchange risks.
❌ Prefer actively managing your investments instead of passive ETFs.
❌ Do not have a long-term investment horizon (3-5 years).
FAQs on Global ETFs in India
1. Can I invest in U.S. ETFs from India?
Yes, through foreign brokerage platforms like Vested, INDmoney, and Interactive Brokers.
2. Do I need a Demat account for Global ETFs?
- For Indian-listed global ETFs → Yes, a Demat account is required.
- For foreign ETFs via U.S. brokers → No Demat is needed, only a brokerage account.
3. Are global ETFs good for long-term investment?
Yes, especially NASDAQ 100 and S&P 500 ETFs, which have historically provided high long-term returns.
📢 Final Verdict: Investing in Global ETFs is an excellent way to diversify, access global markets, and hedge against Indian market risks. 🚀 If you're ready to expand your portfolio beyond India, start with a U.S.-focused ETF like the NASDAQ 100 or S&P 500 ETF.
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