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Best ETFs for Indian Investors: US, Global, and India-Listed Options

By Aayush Jain·Reviewed May 8, 2026·10 min read

Indian investors wanting ETF exposure to global markets have three routes: (1) buy US/UCITS ETFs directly via LRS through a foreign broker, (2) invest in India-listed ETFs that track international indices, or (3) use Indian international funds (fund of funds or ETFs by Motilal Oswal, Mirae, Nippon). Each has a different tax profile and FX cost structure.

India-listed international ETFs

Several Indian AMCs offer ETFs tracking US and global indices: Motilal Oswal Nasdaq 100 ETF (MOSt N100), Mirae Asset NYSE FANG+ ETF, and Nippon India ETF Nifty 50. These are listed on NSE/BSE, tradeable in INR through a regular Indian demat account, and require no LRS paperwork. The key disadvantage: management fees are higher (0.5–0.8%) and tracking error is larger than buying the underlying US ETF directly.

Direct US/global ETF access via LRS

Buying international ETFs directly through IBKR or Schwab via LRS gives you access to products with 0.03–0.22% TERs vs 0.5–0.8% for India-listed equivalents. On a ₹10 lakh ($12,000) position held for 10 years, the TER difference alone saves ₹30,000–60,000 in fees. The LRS process (20% TCS on amounts above ₹7 lakh) creates cash-flow friction, but TCS is creditable against your income tax, so the economic cost is a cash-flow difference, not a permanent cost.


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