Imagine putting your money into a single investment that instantly gives you a stake in India’s top 50 companies — with the flexibility to buy or sell it like a stock, and at a fraction of the cost of a mutual fund. That’s the power of ETFs.
Exchange Traded Funds (ETFs) have quietly become one of the fastest-growing investment categories in India, with total ETF assets crossing ₹7.2 lakh crore in 2025. Whether you’re a first-time investor or looking to optimize an existing portfolio, finding the best ETF in India can make a significant difference to your long-term returns.
In this guide, we cover the top 10 ETF funds in India for 2026 — along with key metrics like expense ratio, AUM, and benchmark — so you can make a confident, well-informed decision on the best ETF to invest in India right now.
What is an ETF?
An ETF (Exchange Traded Fund) is a basket of securities — stocks, bonds, or commodities — that trades on stock exchanges like the NSE or BSE, just like a regular share. Most ETFs passively track a benchmark index such as the Nifty 50 or BSE Sensex, meaning their portfolio mirrors the index rather than relying on active fund manager decisions.
Unlike traditional mutual funds, ETFs offer real-time pricing, lower expense ratios, and can be bought or sold throughout the trading day. This makes them one of the most transparent and cost-efficient investment tools available to Indian investors today.
Key Benefits of ETF Investing:
- Low Cost: Expense ratios as low as 0.04% — far cheaper than actively managed funds
- Instant Diversification: One ETF can give you exposure to 50 or more companies simultaneously
- High Liquidity: Traded on NSE and BSE throughout market hours
- Transparency: ETF holdings are disclosed daily — no hidden surprises
- Tax Efficiency: Unique structure can reduce capital gains distributions compared to mutual funds
- Flexible Entry: Start investing with as little as the price of one ETF unit
Top 10 ETF Funds in India 2026
Here’s a quick comparison of the top ETF in India across categories — from large-cap equity and PSU-themed funds to gold and liquid ETFs:
| ETF Name | Category | Exp. Ratio | AUM | Benchmark |
| SBI ETF Nifty 50 | Large-Cap Equity | 0.04% | ₹11,118 Cr | Nifty 50 Index |
| SBI ETF Sensex | Large-Cap Equity | 0.07% | ₹1,10,153 Cr | BSE Sensex |
| UTI Nifty 50 ETF | Large-Cap Equity | 0.05% | ₹52,120 Cr | Nifty 50 Index |
| Nippon ETF Nifty BeES | Large-Cap Equity | 0.04% | ₹25,000+ Cr | Nifty 50 Index |
| ICICI Pru Nifty ETF | Large-Cap Equity | 0.05% | ₹7,000+ Cr | Nifty 50 Index |
| UTI Sensex ETF | Large-Cap Equity | 0.05% | ₹6,500+ Cr | BSE Sensex |
| Nippon ETF Sensex | Large-Cap Equity | 0.09% | ₹8,079 Cr | BSE Sensex |
| CPSE ETF | PSU/Govt Equity | 0.01% | ₹40,000+ Cr | CPSE Index |
| Nippon ETF Gold BeES | Commodity (Gold) | 0.79% | ₹10,000+ Cr | Gold Price |
| Nippon ETF Liquid BeES | Debt / Cash | 0.09% | ₹11,903 Cr | Liquid Bonds |
Top 10 ETF Funds in India — Detailed Breakdown
1. SBI ETF Nifty 50
Category: Large-Cap Equity
Expense Ratio: 0.04%
AUM: ~₹11,118 Crore
Managed by SBI Mutual Fund, this ETF tracks the Nifty 50 Index and offers exposure to India’s 50 largest companies across sectors. With one of the lowest expense ratios in the industry and a large AUM, it is a go-to choice for investors seeking broad market exposure at minimal cost.
Best for: Passive investors wanting reliable, low-cost exposure to India’s blue-chip companies.
2. SBI ETF Sensex
Category: Large-Cap Equity
Expense Ratio: ~0.07%
AUM: ~₹1,10,153 Crore
One of the largest ETFs by AUM in India, SBI ETF Sensex mirrors the S&P BSE Sensex — India’s benchmark index of 30 leading companies. Its massive corpus means exceptional liquidity and tight tracking of the index.
Best for: Conservative investors who prefer the Sensex’s 30-stock universe over the broader Nifty 50.
3. UTI Nifty 50 ETF
Category: Large-Cap Equity
Expense Ratio: ~0.05%
AUM: ~₹52,120 Crore
UTI Nifty 50 ETF replicates the Nifty 50 Index and is one of the most trusted passive funds in India. It is a strong alternative to SBI’s offering with competitive expense ratios and a large, active investor base.
Best for: Long-term investors seeking a reliable Nifty 50 tracker from a trusted AMC.
4. Nippon ETF Nifty BeES
Category: Large-Cap Equity
Expense Ratio: ~0.04%
AUM: ₹25,000+ Crore
Nippon India ETF Nifty BeES is India’s oldest ETF and one of the most liquid. It has delivered returns of over 101% across a 5-year period and remains a top choice for long-term investors. Its daily trading volume consistently ranks among the highest on NSE.
Best for: Long-term investors looking for one of the most proven and liquid top ETF in India.
5. ICICI Prudential Nifty ETF
Category: Large-Cap Equity
Expense Ratio: ~0.05%
AUM: ₹7,000+ Crore
This ETF from ICICI Prudential mirrors the Nifty 50 with at least 80% exposure to large-cap stocks. It is backed by one of India’s most trusted fund houses and offers consistent index replication with minimal tracking error.
Best for: Investors who prefer ICICI Prudential’s fund management backed by one of India’s largest AMCs.
6. UTI Sensex ETF
Category: Large-Cap Equity
Expense Ratio: ~0.05%
AUM: ₹6,500+ Crore
UTI Sensex ETF tracks the S&P BSE Sensex and gives investors focused exposure to India’s top 30 listed companies. It has delivered 5-year returns exceeding 96%, making it one of the better-performing large-cap ETFs.
Best for: Investors who want concentrated exposure to India’s 30 most prominent blue-chip stocks.
7. Nippon ETF Sensex
Category: Large-Cap Equity
Expense Ratio: ~0.09%
AUM: ~₹8,079 Crore
Nippon ETF Sensex is another strong option for investors targeting the BSE Sensex. With an AUM of ₹8,079 crore and consistent returns tracking Sensex performance closely, it remains a dependable large-cap pick.
Best for: Investors seeking an alternative Sensex tracker with strong liquidity and a reputable fund house.
8. CPSE ETF
Category: PSU / Government Equity
Expense Ratio: ~0.01%
AUM: ₹40,000+ Crore
The CPSE ETF (Central Public Sector Enterprises) is a unique offering that invests in government-owned companies. It offers exposure to a mix of large, mid, and small-cap PSU stocks, making it ideal for those bullish on India’s public sector growth. Historically, it has delivered exceptional returns during PSU-driven bull phases.
Best for: Investors looking for a high-conviction thematic bet on India’s public sector companies.
9. Nippon ETF Gold BeES
Category: Commodity — Gold
Expense Ratio: ~0.79%
AUM: ₹10,000+ Crore
Gold ETFs like Nippon ETF Gold BeES offer exposure to gold price movements without the hassle of physical storage. The fund is backed by physical gold, making it a straightforward and cost-effective way to include gold in your portfolio. It has delivered returns of over 100% in 5 years, mirroring gold’s rally.
Best for: Investors looking to hedge against inflation and rupee depreciation through gold exposure.
10. Nippon ETF Liquid BeES
Category: Debt / Cash Equivalent
Expense Ratio: ~0.09%
AUM: ~₹11,903 Crore
Nippon ETF Liquid BeES is India’s first and most popular liquid ETF. It invests in short-term government securities and money market instruments, making it a safe parking spot for idle cash. Returns are stable at around 5.5–6% annually, with virtually no market risk.
Best for: Investors who want to park short-term funds in a low-risk, liquid instrument instead of a savings account.
How to Choose the Best ETF to Invest in India
When selecting ETFs for your investment portfolio, several key factors can significantly impact your returns and overall investment experience. It is also useful to compare mutual funds vs ETFs before choosing the right investment vehicle. Understanding these elements will help you make more informed decisions aligned with your financial goals. Here are the crucial factors to consider when choosing ETFs:
- 1. Expense Ratio This is the annual fee the ETF charges to cover operating costs. The lower the expense ratio, the more of your returns stay in your pocket. Always look for ETFs with an expense ratio below 0.5%. Top ETFs in India such as SBI ETF Nifty 50 have ratios as low as 0.04%.
- 2. Tracking Error Tracking error measures how accurately an ETF mirrors its benchmark index. A lower tracking error means the ETF is efficiently replicating its index. When comparing the best ETF to invest in India, always prefer funds with tracking errors below 0.5%.
- 3. Liquidity Higher liquidity means you can buy or sell ETF units without significantly moving the price. Check the average daily trading volume and the bid-ask spread. ETFs with higher Assets Under Management (AUM) generally offer better liquidity.
- 4. AUM (Assets Under Management) A higher AUM indicates strong investor confidence and typically ensures better liquidity. Most top ETF funds in India have AUMs exceeding ₹10,000 crores.
- 5. Historical Performance While past performance does not guarantee future returns, it reveals how an ETF has behaved across different market cycles — bull runs, corrections, and volatile phases.
Top 10 US ETFs for Indian Investors : Exploring International Opportunities
Investing in US ETFs offers Indian investors a gateway to the world’s largest and most dynamic economy. Readers exploring global diversification can also look at the largest ETFs for Indian investors. By diversifying into US markets, investors can tap into global growth opportunities, hedge against currency fluctuations, and gain exposure to sectors and companies not readily available in the Indian market. Here’s a look at 10 top US ETFs that Indian investors might consider:
1. SPDR S&P 500 ETF (SPY)
SPY is the oldest and most recognized ETF, tracking the S&P 500 index. It offers exposure to 500 of the largest US companies, including tech giants like Microsoft, Apple, and Amazon. With an expense ratio of 0.10%, SPY provides a cost-effective way to invest in the US market.
2. iShares Core S&P 500 ETF (IVV)
IVV is a passively managed ETF that also tracks the S&P 500 index. It’s known for its low fees and broad exposure to the US stock market, making it an excellent core holding for diversified portfolios. Over the past 15 years, IVV has delivered annual returns between 12% and 15%, reflecting the strong performance of the US market.
3. Vanguard Total Stock Market ETF (VTI)
VTI offers comprehensive coverage of the US equity market, including both large and small-cap stocks. It tracks the CRSP US Total Market Index, providing exposure to a broader range of companies than S&P 500-based ETFs. With a year-to-date return of 10.12% and a 5-year return of 14.90%, VTI has demonstrated strong performance.
4. Vanguard S&P 500 ETF (VOO)
VOO tracks the S&P 500 index, offering exposure to 500 of the largest US companies. With an ultra-low expense ratio of 0.03%, it’s one of the most cost-effective ways to invest in the US market. The fund has shown impressive performance, with a 1-year return of 25.75% and a 3-year return of 27.17%.
5. Invesco QQQ Trust Series I (QQQ)
QQQ tracks the NASDAQ-100 Index, focusing on the largest non-financial companies listed on the NASDAQ stock exchange. This ETF is heavily weighted towards technology companies, making it an excellent choice for investors bullish on the tech sector. With a 1-year return of 34.02% and a 3-year return of 35.53%, QQQ has outperformed the S&P 500 over these periods.
6. iShares Core U.S. Aggregate Bond ETF (AGG)
AGG provides exposure to the total US investment-grade bond market. It’s an excellent option for investors looking to add fixed income to their portfolio or seeking a more conservative investment approach. While its returns are lower than equity ETFs (1.61% over 1 year), AGG offers stability and income.
7. Vanguard Growth ETF (VUG)
VUG focuses on US large-cap growth stocks, with a heavy emphasis on technology and consumer cyclical sectors. It’s ideal for investors seeking exposure to companies with above-average growth potential. The fund has delivered impressive returns, with a 5-year return of 18.83% and a 1-year return of 33.29%.
8. Vanguard FTSE Developed Markets ETF (VEA)
VEA offers exposure to stocks in developed markets outside the US, including Europe, Japan, and Canada. It’s an excellent way for Indian investors to diversify globally beyond just the US market. While its recent performance (9.42% over 1 year) has lagged behind US-focused ETFs, VEA provides valuable diversification benefits. This is because it includes well-known multinational companies like Nestle and LVMH.
9. Vanguard Value ETF (VTV)
VTV focuses on US value stocks – companies that are considered undervalued relative to their fundamentals. Its holdings include stable, established companies like Berkshire Hathaway and Johnson & Johnson. The fund has delivered solid returns, with a 3-year return of 18.2%.
10. iShares Core MSCI EAFE ETF (IEFA)
IEFA tracks developed markets outside North America, offering exposure to Europe, Australasia, and the Far East. It includes large, mid, and small-cap stocks, providing a comprehensive international investment option. With a 1-year return of 10.14% and an attractive dividend yield of 3.1%, IEFA offers both growth potential and income.
Benefits of Adding US ETFs to Your Portfolio
- Currency Hedge: USD-denominated assets protect you if the Rupee weakens
- Global Sector Access: Semiconductors, biotech, AI — sectors underrepresented in India
- Proven Long-Term Returns: The S&P 500 has averaged ~10–12% annual returns over decades
- Easy Diversification: One ETF like SPY gives you exposure to 500 US companies
How to Invest in US ETFs Through Appreciate
Appreciate is a user-friendly trading app that allows Indian investors to access ETFs and US stocks directly from their smartphones. The app also offers a low entry barrier, enabling investments starting from just ₹1.
This platform bridges the gap between Indian investors and the US market, providing real-time access and a range of investment options. Here’s how you can invest in ETFs using the Appreciate app:
- Create an Appreciate Account: Sign up on the Appreciate app by providing personal details and necessary KYC (Know Your Customer) documents such as PAN card and address proof. Once verified, your account will be ready for transactions.
- Fund Your Account: Link your Indian bank account to transfer money to your Appreciate account. The app handles currency conversion, offering competitive forex rates for INR to USD transactions.
- Choose Your ETF: Browse through the available US ETFs on the platform. Use Appreciate’s research tools and educational resources to make informed decisions based on your investment goals and risk tolerance. You can also explore Top US ETFs to Buy from India for potential investment opportunities.
- Place Your Order: Execute your buy order through the app’s interface. You can opt for a market order (buy at current price) or a limit order (set a maximum purchase price). Orders are processed during US market hours.
- Monitor and Manage: Keep track of your investments through the app’s dashboard. Appreciate provides real-time updates and analytics to help you manage your portfolio effectively.
Appreciate offers several advantages for Indian investors venturing into US ETFs, including low transaction fees that make frequent trading affordable. The app also provides AI-powered recommendations and educational resources, helping investors make informed decisions. Moreover, features like fractional investing allow for diversification even with small amounts, while automated SIPs (Systematic Investment Plans) enable consistent, long-term investing.
Note: After buying shares, it’s important to track their performance and manage your portfolio effectively. Use our Stock Price Average Calculatorto calculate the average price of multiple purchases and get a clearer picture of your overall investment
Conclusion
ETFs remain one of the smartest, most cost-efficient ways to build long-term wealth in India. Whether you choose a broad Nifty 50 tracker, a thematic PSU fund, a gold ETF, or a liquid parking instrument — the best ETF to invest in India depends on your financial goals, time horizon, and risk appetite.
For most investors, a combination of a Nifty 50 ETF (for core growth), a Gold ETF (for hedging), and a Liquid ETF (for short-term parking) forms a solid, low-cost foundation.
Ready to start building wealth through the top ETF funds in India? Download the Appreciate app today and begin your ETF journey with as little as ₹1 — your future self will thank you.
FAQs on Top 10 ETF Funds in India
The best ETF to invest in India depends on your goal. For broad market exposure, SBI ETF Nifty 50 or Nippon ETF Nifty BeES are top choices. For gold exposure, Nippon ETF Gold BeES is ideal. For short-term fund parking, Nippon ETF Liquid BeES is the most popular option.
The top 10 ETF funds in India in 2026 include: SBI ETF Nifty 50, SBI ETF Sensex, UTI Nifty 50 ETF, Nippon ETF Nifty BeES, ICICI Prudential Nifty ETF, UTI Sensex ETF, Nippon ETF Sensex, CPSE ETF, Nippon ETF Gold BeES, and Nippon ETF Liquid BeES.
Beginners can invest in ETFs by opening a Demat account with a SEBI-registered broker, completing KYC, searching for the ETF by ticker on NSE or BSE, and placing a buy order. Platforms like Appreciate make this even simpler by combining investing tools with educational resources and AI-based recommendations.
ETFs and mutual funds both have merits. ETFs typically have lower expense ratios, offer real-time trading, and are highly transparent. Mutual funds (especially active ones) may offer higher return potential through active management. For passive, low-cost investing, ETFs often have an edge. Read our full comparison: Mutual Funds vs ETFs.
Historically, Nippon India ETF Nifty 50 BeES has delivered some of the highest long-term returns — over 100% across 5 years and 700%+ over 15 years. CPSE ETF has also shown exceptional returns during PSU-driven rallies.
Yes. Indian investors can invest in US ETFs through IFSC-registered platforms like Appreciate, which allows you to access ETFs like SPY, QQQ, and VOO directly from India. Investments are made in USD, and the platform handles currency conversion with competitive forex rates.
There is no fixed minimum for ETFs traded on NSE/BSE — you can buy as little as one unit (which could be ₹50 to ₹500 depending on the ETF). For US ETFs via Appreciate, fractional investing allows you to start with as little as ₹1.
ETFs that track broad indices like the Nifty 50 or Sensex are considered relatively safe for long-term investment, as they’re diversified across many companies. Like all market investments, they carry risk — but historical data shows that long-term returns from index ETFs have been strong and consistent.
The top 5 ETFs to consider buying based on recent performance include:
Motilal Oswal Nifty Realty ETF with a 1 year return of 46.59%
Tata Nifty Private Bank ETF with a 1 year return of 14.38%
Mirae Asset Nifty Financial Services ETF with a 1 year return of 17.8%
These ETFs are favoured for their robust returns, despite their high-risk categorization.
Nippon India Silver has the highest trading volume in India, with 13.20 million units traded recently. High trading volume often indicates strong liquidity and investor interest.
The Nippon India ETF Nifty 50 BeES is noted for its significant growth, with a 10-year return that outperforms many other ETFs in the market. It is a strong contender for investors looking for substantial long-term capital appreciation.
The ETF with the highest 10-year return in India is the Nippon India ETF Nifty 50 BeES. This ETF has consistently delivered substantial returns, making it a top choice for long-term investors seeking significant capital growth.
Disclaimer: Investments in securities markets are subject to market risks. Read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory.
