The below table shows a list Of the Best ETFs in India Based on AUM, NAV and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| ICICI Pru Silver ETF FOF | 667.44 | 13.37 | 100 |
| Invesco India – Invesco EQ NASDAQ-100 ETF FoF | 415.47 | 15.56 | 100 |
| Nippon India Silver ETF FOF | 343.07 | 13.33 | 1500 |
| SBI Silver ETF FOF | 254.5 | 9.18 | 1500 |
| Aditya Birla SL Silver ETF FOF | 138.13 | 13.6 | 100 |
| ICICI Pru BSE 500 ETF FOF | 117.67 | 16.06 | 5000 |
| Edelweiss Gold and Silver ETF FoF | 100.32 | 14.32 | 100 |
| UTI Gold ETF FoF | 100.01 | 13.94 | 100 |
| HDFC Silver ETF FoF | 94.47 | 14.43 | 1500 |
| Invesco India Gold ETF FoF | 74.39 | 21.3 | 1500 |
Introduction To Best ETF In India
ICICI Prudential Silver ETF FoF Direct – Growth
ICICI Prudential Silver ETF FoF is a Gold/Precious Metals mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 2 years and 8 months, having been launched on January 13, 2022.
ICICI Prudential Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹667.44 crores, a 5-year CAGR of 0%, an exit load of 1% and an expense ratio of 0.12%. The SEBI risk category is Very High. Its asset allocation includes 99.68% in Mutual Funds and 0.32% in Cash & Equivalents.
Invesco India – Invesco EQ NASDAQ-100 ETF FoF Direct – Growth
Invesco India – Invesco EQ NASDAQ-100 ETF FoF is an International mutual fund scheme from Invesco Mutual Fund. This fund has been operational for 2 years and 5 months, having been launched on March 30, 2022.
Invesco India – Invesco EQ NASDAQ-100 ETF FoF falls under the FoFs (Overseas) category with an AUM of ₹415.47 crores, a 5-year CAGR of 0%, an exit load of 0% and an expense ratio of 0.16%. The SEBI risk category is Very High. Its asset allocation includes 99.54% in Mutual Funds and 0.46% in Cash & Equivalents.
Nippon India Silver ETF FoF Direct – Growth
Nippon India Silver ETF FoF is a Flexi Cap mutual fund scheme from Nippon India Mutual Fund. This fund has been operational since February 3, 2022, and has provided an average annual return of 19.74% since inception.
Nippon India Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹343.07 crores, a 5-year CAGR of 0%, an exit load of 1% and an expense ratio of 0.25%. The SEBI risk category is Very High. Its asset allocation includes 99.76% in Mutual Funds and 0.24% in Cash & Equivalents.
SBI Silver ETF FoF Direct – Growth
SBI Silver ETF FoF is a Flexi Cap mutual fund scheme from SBI Mutual Fund. This fund has been operational since July 11, 2024, with returns since inception not yet available.
SBI Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹254.50 crores, a 5-year CAGR of 0%, an exit load of 1%, and an expense ratio of 0.25%. The SEBI risk category is Very High. Its asset allocation includes 100.04% in Mutual Funds and -0.04% in Cash & Equivalents.
Aditya Birla Sun Life Silver ETF FoF Direct – Growth
Aditya Birla Sun Life Silver ETF FoF is a Gold/Precious Metals mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 2 years and 8 months, having been launched on January 13, 2022.
Aditya Birla Sun Life Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹138.13 crores, a 5-year CAGR of 0%, an exit load of 0.5%, and an expense ratio of 0.21%. The SEBI risk category is Very High. Its asset allocation includes 95.72% in Mutual Funds and 4.28% in Cash & Equivalents.
ICICI Prudential BSE 500 ETF FoF Direct – Growth
ICICI Prudential BSE 500 ETF FoF is an Equity FoF mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 2 years and 10 months, having been launched on November 12, 2021.
ICICI Prudential BSE 500 ETF FoF falls under the FoFs (Domestic) – Equity Oriented category with an AUM of ₹117.67 crores, a 5-year CAGR of 0%, an exit load of 0%, and an expense ratio of 0.13%. The SEBI risk category is Very High. Its asset allocation includes 99.87% in Mutual Funds and 0.13% in Cash & Equivalents.
Edelweiss Gold and Silver ETF FoF Direct – Growth
Edelweiss Gold and Silver ETF FoF is a Gold mutual fund scheme from Edelweiss Mutual Fund. This fund has been operational since September 14, 2022, with an average annual return of 21.38% since inception.
Edelweiss Gold and Silver ETF FoF fall under the FoFs (Gold) category with an AUM of ₹100.32 crores, a 5-year CAGR of 0%, an exit load of 0.1% and an expense ratio of 0.25%. The SEBI risk category is Very High. Its asset allocation includes 99.90% in Mutual Funds and 0.10% in Cash & Equivalents.
UTI Gold ETF FoF Direct – Growth
UTI Gold ETF FoF is a Gold mutual fund scheme from UTI Mutual Fund. This fund has been operational since October 28, 2022, with an average annual return of 24.21% since inception.
UTI Gold ETF FoF falls under the FoFs (Gold) category with an AUM of ₹100.01 crores, a 5-year CAGR of 0%, an exit load of 1% and an expense ratio of 0.22%. The SEBI risk category is High. Its asset allocation includes 99.59% in Mutual Funds and 0.41% in Cash & Equivalents.
HDFC Silver ETF FoF Direct – Growth
HDFC Silver ETF FoF is a Flexi Cap mutual fund scheme from HDFC Mutual Fund. This fund has been operational since October 28, 2022, with an average annual return of 19.84% since inception.
HDFC Silver ETF FoF falls under the Flexi Cap Fund category with an AUM of ₹94.47 crores, a 5-year CAGR of 0%, an exit load of 1%, and an expense ratio of 0.27%. The SEBI risk category is Very High. Its asset allocation includes 99.94% in Mutual Funds and 0.06% in Cash & Equivalents.
Invesco India Gold ETF FoF Direct – Growth
Invesco India Gold ETF FoF is a Gold mutual fund scheme from Invesco Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.
Invesco India Gold ETF FoF falls under the FoFs (Gold) category with an AUM of ₹74.39 crores, a 5-year CAGR of 12.79%, an exit load of 0% and an expense ratio of 0.20%. The SEBI risk category is High. Its asset allocation includes 97.55% in Mutual Funds and 2.45% in Cash & Equivalents.
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What Is ETF In India?
An Exchange Traded Fund (ETF) in India is a type of investment fund that trades on stock exchanges like individual stocks. ETFs are designed to track the performance of a specific index, commodity, bond, or basket of assets, offering investors diversified exposure through a single transaction.
ETFs combine features of both mutual funds and stocks. Like mutual funds, they represent a basket of securities, but like stocks, they can be bought and sold throughout the trading day at market prices, providing investors with flexibility and liquidity.
In India, ETFs have gained popularity due to their low costs, tax efficiency, and ability to provide diversified exposure to various market segments. They are available for different asset classes including equities, gold, and debt instruments.
Features Of Best ETF In India
The main features of Best ETF In India include low costs, high liquidity, transparency, diversification, flexibility in trading and the ability to closely track underlying indices. These features make ETFs an attractive investment option for many investors.
1. Low Costs: ETFs typically have lower expense ratios compared to actively managed mutual funds, potentially enhancing long-term returns for investors.
2. High Liquidity: ETFs can be bought and sold throughout the trading day at market prices, providing investors with the flexibility to enter or exit positions quickly.
3. Transparency: ETF holdings are disclosed daily, allowing investors to know exactly what they own and enabling better-informed investment decisions.
4. Diversification: A single ETF can provide exposure to a broad market index or a specific sector, offering instant diversification and reducing single-stock risk.
5. Flexibility: ETFs can be traded like stocks, allowing for various trading strategies including short selling, limit orders, and stop-loss orders.
Top ETF In India In India Based On Expense Ratio
The table below shows the Top ETF In India In India Based On Expense Ratio based on the lowest to highest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| ICICI Pru Silver ETF FOF | 0.12 | 100 |
| ICICI Pru BSE 500 ETF FOF | 0.13 | 5000 |
| Invesco India – Invesco EQ NASDAQ-100 ETF FoF | 0.16 | 100 |
| Invesco India Gold ETF FoF | 0.2 | 1500 |
| Aditya Birla SL Silver ETF FOF | 0.21 | 100 |
| UTI Gold ETF FoF | 0.22 | 100 |
| Nippon India Silver ETF FOF | 0.25 | 1500 |
| SBI Silver ETF FOF | 0.25 | 1500 |
| Edelweiss Gold and Silver ETF FoF | 0.25 | 100 |
| HDFC Silver ETF FoF | 0.27 | 1500 |
Best ETF In India Based On 3Y CAGR
The table below shows the Best ETF In India Based On 3Y CAGR based on the Highest 3Y CAGR.
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
| Invesco India Gold ETF FoF | 13.81 | 1500 |
Top ETF In India Based On Exit Load
The table below shows the Top ETF In India Based On Exit load based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | Exit Load (%) | Minimum SIP (Rs) |
| Invesco India Gold ETF FoF | 0 | 1500 |
| ICICI Pru BSE 500 ETF FOF | 0 | 5000 |
| Invesco India – Invesco EQ NASDAQ-100 ETF FoF | 0 | 100 |
| Edelweiss Gold and Silver ETF FoF | 0.1 | 100 |
| Aditya Birla SL Silver ETF FOF | 0.5 | 100 |
| UTI Gold ETF FoF | 1 | 100 |
| ICICI Pru Silver ETF FOF | 1 | 100 |
| HDFC Silver ETF FoF | 1 | 1500 |
| Nippon India Silver ETF FOF | 1 | 1500 |
| SBI Silver ETF FOF | 1 | 1500 |
ETF In India Returns
The table below shows ETF In India Returns Based on 1Y return
| Name | Absolute Returns – 1Y (%) | Minimum SIP (Rs) |
| ICICI Pru BSE 500 ETF FOF | 38.44 | 5000 |
| Invesco India – Invesco EQ NASDAQ-100 ETF FoF | 33.63 | 100 |
| UTI Gold ETF FoF | 21.47 | 100 |
| Invesco India Gold ETF FoF | 19.99 | 1500 |
| Edelweiss Gold and Silver ETF FoF | 18.49 | 100 |
| Aditya Birla SL Silver ETF FOF | 16.37 | 100 |
| ICICI Pru Silver ETF FOF | 15.64 | 100 |
| HDFC Silver ETF FoF | 15.06 | 1500 |
| Nippon India Silver ETF FOF | 14.85 | 1500 |
Historical Performance Of ETF In India
The table below shows the Historical Performance Of ETF In India Based on 5Y return
| Name | CAGR 5Y (Cr) | Minimum SIP (Rs) |
| Invesco India Gold ETF FoF | 12.79 | 1500 |
Factors To Consider When Investing In ETF In India
When investing in ETFs in India, consider tracking error, liquidity, expense ratio, underlying index, and assets under management (AUM). These factors can significantly impact the ETF’s performance and suitability for your investment portfolio.
1. Tracking Error: This measures how closely the ETF follows its underlying index. Lower tracking error indicates better index replication and potentially better returns.
2. Liquidity: Higher trading volumes generally indicate better liquidity, which can result in tighter bid-ask spreads and easier trading.
3. Expense Ratio: Lower expense ratios can lead to better long-term returns. Compare ratios across similar ETFs to find the most cost-effective option.
4. Underlying Index: Ensure the ETF’s underlying index aligns with your investment strategy and risk tolerance. Different indices can provide exposure to various market segments.
5. Assets Under Management: Larger AUM often indicates better liquidity and a lower risk of ETF closure. However, very large ETFs might face challenges in tracking their index efficiently.
How To Invest In ETF In India?
To invest in ETFs in India, start by researching and selecting ETFs that align with your investment goals and risk tolerance. Consider factors like the underlying index, expense ratio and historical performance. Open a demat and trading account with a broker like Alice Blue.
Complete the necessary KYC procedures to activate your account. Once your account is set up, you can buy ETF units just like you would buy stocks. Place a buy order for your chosen ETF through your trading platform.
Remember to consider brokerage fees and any other associated costs. You can invest in ETFs either through a lump sum purchase or through systematic investment plans (SIPs) if offered by your broker. Regularly review your ETF investments to ensure they continue to meet your financial goals.
Impact Of Market Trends On ETF In India
Market trends significantly impact ETFs in India, as these funds are designed to track specific market indices or sectors. Economic conditions, policy changes, global events and sector-specific developments can all influence the performance of ETFs, affecting their prices and returns.
During bull markets, equity ETFs tracking broad market indices tend to perform well. In times of economic uncertainty, gold ETFs or debt ETFs might see increased interest. The impact varies based on the type of ETF and its underlying assets.
How Does ETF In India Perform In Volatile Markets?
ETFs in India can exhibit varying performance in volatile markets, depending on their underlying assets and the nature of market volatility. Broad market ETFs generally follow overall market trends, experiencing ups and downs in line with market fluctuations.
During periods of high volatility, some investors may prefer ETFs for their intraday trading flexibility. Sector-specific ETFs might show more pronounced volatility based on sector performance. Gold ETFs often see increased interest during market turbulence as investors seek safe-haven assets.
Advantages Of ETF In India
The main advantages of ETFs in India include low costs, high liquidity, transparency, diversification benefits, flexibility in trading and potential for tax efficiency. These features make ETFs an attractive option for various types of investors.
1. Low Costs: ETFs typically have lower expense ratios compared to actively managed funds, potentially enhancing long-term returns for investors.
2. High Liquidity: ETFs can be bought and sold throughout the trading day at market prices, offering flexibility to investors for entry and exit.
3. Transparency: Daily disclosure of holdings allows investors to know exactly what they own, enabling informed decision-making.
4. Diversification: A single ETF can provide exposure to a broad market index or sector, offering instant diversification and reducing single-stock risk.
5. Tax Efficiency: ETFs generally have lower turnover, which can result in greater tax efficiency compared to actively managed funds.
What Are The ETF Disadvantages?
The main disadvantages of ETFs include trading costs, potential tracking errors, limited customization, over-diversification risk and the complexity of some specialized ETFs. Investors should be aware of these potential drawbacks when considering ETF investments.
1. Trading Costs: Frequent trading of ETFs can incur brokerage fees, potentially eroding returns, especially for small investment amounts.
2. Tracking Errors: Some ETFs may not perfectly replicate the performance of their underlying index due to various factors.
3. Limited Customization: Unlike individual stocks, ETFs don’t allow investors to pick specific companies or tailor their portfolios precisely.
4. Over-diversification: Broad-based ETFs might limit the potential for outperformance in certain market conditions by diluting exposure to top-performing stocks.
5. Complexity: Some specialized ETFs, like leveraged or inverse ETFs, can be complex and may not be suitable for all investors.
Contribution Of ETF In India To Portfolio Diversification
ETFs in India can significantly contribute to portfolio diversification by providing exposure to a wide range of assets through a single investment. They offer an efficient way to diversify across different sectors, market capitalizations, or even asset classes, potentially reducing overall portfolio risk.
For example, an investor can use a Nifty 50 ETF for large-cap exposure, a mid-cap ETF for growth potential, and a gold ETF for hedging against market volatility. This allows for a well-rounded portfolio without the need to select and manage individual securities.
Who Should Invest In the Best ETF In India?
ETFs in India are suitable for a wide range of investors, including beginners seeking easy market exposure, passive investors preferring a buy-and-hold strategy, cost-conscious individuals looking for low-fee options, traders wanting intraday flexibility and investors seeking specific sector or theme exposure.
Investors should have a clear understanding of their financial goals, risk tolerance, and investment horizon when considering ETFs. They’re particularly useful for those who want diversified exposure to markets but may lack the time or expertise to actively manage a portfolio of individual stocks.
Impact Of Manager Expertise On ETF In India Performance
Unlike actively managed funds, most ETFs are passively managed to track an underlying index. Therefore, the impact of manager expertise is generally less pronounced in ETFs compared to actively managed funds. The primary focus is on minimizing tracking errors and managing fund flows efficiently.
However, manager expertise can still play a role in index rebalancing decisions and optimizing trading strategies to minimize costs. For more complex ETFs, such as smart-beta or factor-based ETFs, manager expertise in constructing and maintaining the portfolio becomes more important.
FAQs – Best ETF In India
An ETF (Exchange-Traded Fund) in India is a marketable security that tracks an index, commodity, bonds, or a basket of assets but trades like a stock on exchanges. It offers diversification, liquidity and typically lower fees, making it a popular investment option for investors.
The main difference between an ETF and a mutual fund in India lies in how they are traded. ETFs trade like stocks on exchanges throughout the day, offering real-time pricing, while mutual funds are bought or sold at the day’s closing NAV. Additionally, ETFs typically have lower expense ratios.
Top ETF In India #1: ICICI Pru Silver ETF FOF
Top ETF In India #2: Invesco India – Invesco EQ NASDAQ-100 ETF FoF
Top ETF In India #3: Nippon India Silver ETF FOF
Top ETF In India #4: SBI Silver ETF FOF
Top ETF In India #5: Aditya Birla SL Silver ETF FOF
These funds are listed based on the Highest AUM.
The best ETFs in India, based on expense ratios, include ICICI Pru Silver ETF FOF, ICICI Pru BSE 500 ETF FOF, Invesco India – Invesco EQQQ NASDAQ-100 ETF FoF, Invesco India Gold ETF FoF and Aditya Birla SL Silver ETF FOF. These ETFs provide diversified exposure to various asset classes such as equities, silver and gold, making them attractive options for investors seeking a cost-effective and diverse investment strategy.
ETFs in India track a specific index or asset. They’re listed on stock exchanges and trade like stocks. The ETF provider creates/redeems units to maintain the fund’s market price close to its Net Asset Value (NAV), ensuring accurate index tracking.
The main types of ETFs in India include Equity ETFs, which track stock indices like Nifty 50; Debt ETFs that invest in bonds; Gold ETFs backed by physical gold; International ETFs tracking global markets and Sectoral or Thematic ETFs focused on specific industries.
ETFs in India are not tax-free. Equity ETF gains held for over 1 year are subject to long-term capital gains tax of 10% above ₹1 lakh. Short-term gains (less than 1 year) are taxed at 15%. Taxation for other ETF types may vary.
ETFs can be a good investment as they offer diversification, low expense ratios, and liquidity. They allow investors to gain exposure to a wide range of assets, including stocks, bonds and commodities. However, their performance depends on market conditions, so risks remain.
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