Top US ETFs to Invest in India

For investors looking to invest in US stocks from India, US ETFs offer a seamless way to participate in the growth of the world’s largest economy. In this investment journey, top ETFs offer a simple, low-cost way to invest in global giants like Apple, Amazon, and Microsoft, all from a single investment.

What are Top US Exchange Traded Funds (ETFs)?

Top US ETFs are exchange-traded funds that stand out due to their strong performance, large assets under management, high liquidity, broad diversification, and reliable track records. These ETFs typically track major indices like the S&P 500 or NASDAQ-100, or focus on high-growth sectors such as technology, ESG (environmental, social, governance), or emerging markets.

List of Top US ETFs for Indian investors 2025

Why should Indians invest in top US ETFs?

Here’s why adding US ETFs to your portfolio can be a strategic move for long-term wealth creation:

1. Diversified global exposure: Many world-dominating companies like Amazon, Alphabet (Google), and Meta are listed in the US. Leading ETFs like SPY (S&P 500) or VTI (Total Market) offer exposure to such stocks, spreading your investment risk.
2. Access to innovation: Want exposure to top tech? QQQ (NASDAQ-100) includes big names like Apple, Microsoft, Nvidia, and Tesla, and other companies leading the AI and tech revolution.
3. Stable and liquid: Top ETFs trade with high volumes, making it easy to buy or sell at real-time market prices. This adds flexibility and reduces the risk of price slippage.
4. Currency diversification: Holding assets in dollars (USD) can hedge against rupee (INR) depreciation. If the rupee weakens, your dollar investments gain more value in INR terms.
5. Reliable dividend income: Some top ETFs, like VYM (High Dividend Yield ETF) or SCHD, offer regular dividend payouts—ideal for those seeking passive income.

Key benefits of investing in top US ETFs from India

• Low Costs: Most top ETFs have very low expense ratios—between 0.03% and 0.5%, making them more cost-efficient than many Indian mutual funds.
• Diversification: One ETF gives you access to entire sectors or indices. For example, SPY gives you exposure to 500 large US companies in a single investment.
• High Transparency: Top ETFs disclose their holdings daily, so you always know where your money is going.
• Real-time trading:  Unlike mutual funds, ETFs trade live on stock exchanges. You can buy and sell during US market hours, just like a stock.
• Tax efficiency: Due to their structure, ETFs are generally more tax-efficient and do not pass frequent capital gains to investors like traditional mutual funds.
• Easy access from India: With platforms like INDmoney, investing in top US ETFs from India is straightforward. You can even start with fractional shares and small amounts.

How to choose the right US ETF for investing?

Choosing the right ETF means thinking about your goals, how much risk you're comfortable with, and what you expect from the market. Look at things like how the ETF has performed in the past, the fees it charges, how easily you can buy or sell it, and which sectors or countries it invests in.

Things to consider before investing in a top US ETF from India:

• Performance History: Look at long-term returns and volatility.
• Expense Ratio: Lower fees help maximize your returns.
• Trading Volume: High liquidity makes it easier to buy/sell.
• Holdings: Check which companies or sectors the ETF includes.
• Investment Objective: Are you aiming for growth, income, or diversification?

For e.g.:

• Want tech exposure? You can go for QQQ or ARKK (ARK Innovation ETF)
• Want dividend income? VYM or SCHD ETFs might be the right choice
• Looking for broad-market exposure? You can Pick SPY or VTI
• Sustainable investing? You can choose SUSA or ICLN (Clean Energy ETF)

Risks of Investing in US ETFs

• Market volatility: Since ETFs track stock indices, their prices can go up or down based on overall market movements. Sudden market drops can impact your investment value.
• Tracking error: Sometimes an ETF's returns may slightly differ from the index it tracks. This can happen due to fund expenses or delays in buying/selling assets.
• Currency fluctuations: If the US dollar weakens against the Indian rupee, your returns may decrease when converted back to rupee. Currency movement (USD to INR) can affect your overall gains.
• Liquidity concerns: ETFs with low trading volume, especially niche or sector-specific ones, may be harder to sell quickly. This could lead to buying/selling at less favorable prices.
• Interest rate risk: ETFs that invest in bonds may lose value when interest rates rise. This is because rising rates usually cause bond prices to fall.
• Tax implications: US ETF investments are taxed differently in India, especially under capital gains rules. It’s wise to check with a tax expert before investing. 

How to invest in top US ETFs via INDmoney

Here is a step-by-step guide to help you invest in US ETFs from India through INDmoneyF

Step 1: Create an INDmoney account: Download the INDmoney app or visit the website. Sign up and complete the KYC (Know Your Customer) process to get started.

Step 2: Fund your account: Transfer money in rupee (INR) to your US stocks account.

Step 3: Research ETFs: Use the INDmoney platform to explore and compare top US ETFs based on performance, sector, expense ratios, and risk level.

Step 4: Place order: Choose the ETF you want to invest in and place a buy order. You can even start with fractional shares, no need for a large upfront amount.

Step 5: Track and rebalance: Keep an eye on your ETF performance using INDmoney’s investment tracker. Review and rebalance your portfolio every 6–12 months to stay on track with your goals.