Best India ETFs in 2023: Top Picks with Fees, Returns & Liquidity
Discover the leading India ETFs in 2023, including the Franklin FTSE India ETF with the lowest fees, Columbia India Consumer ETF delivering the highest returns, and the highly liquid iShares MSCI India ETF. Learn how these funds can diversify your portfolio and capitalize on India's economic growth.
Explore FLIN, INCO, and INDA – India ETFs excelling in low fees, top 1-year returns, and superior liquidity respectively.
India's economy is rapidly rebounding following the sharp downturn caused by the Covid-19 pandemic, with the International Monetary Fund forecasting a 5.9% GDP growth in 2023.
Driven by a booming population and growing foreign investments, India is poised for significant expansion. The United Nations projects India will surpass China as the world's most populous country this year, reaching over 1.4 billion people. Major tech firms, including Apple, have committed to expanding manufacturing operations in India, further boosting economic prospects.
Key Highlights
- Indian stocks have trailed the S&P 500 over the past year.
- IMF estimates India’s GDP growth at 5.9% for 2023.
- Franklin FTSE India ETF offers the lowest expense ratio; Columbia India Consumer ETF delivers the best 1-year returns; iShares MSCI India ETF provides the highest liquidity.
Investing in India ETFs allows global investors to diversify geographically by gaining exposure to a broad range of companies listed on India’s National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Over the last 12 months, the MSCI India Index posted a 15% total return, underperforming the S&P 500’s 21% total return.
There are nine India-focused ETFs traded in the U.S. market, excluding leveraged, inverse funds, and those with under $50 million in assets. These ETFs primarily invest in Indian equities rather than bonds.
Below is an overview of the top India ETFs ranked by lowest fees, highest 1-year return, and most liquidity as of June 22, 2023.
Lowest Fee India ETF: Franklin FTSE India ETF (FLIN)
- 1-Year Return: 13.13%
- Expense Ratio: 0.19%
- Dividend Yield: 0.7%
- Average Daily Volume (30 days): 170,341 shares
- Assets Under Management: $204.46 million
- Inception: February 6, 2018
- Issuer: Franklin Templeton
FLIN tracks the FTSE India RIC Capped Index, focusing on large- and mid-cap Indian stocks. The portfolio is dominated by financials (approximately 21%), followed by technology and energy sectors.
Top holdings include Reliance Industries Ltd., a leader in petrochemicals and textiles; Housing Development Finance Corporation Ltd., a major housing finance provider; and Infosys Ltd., a prominent IT consulting and software services company.
Best 1-Year Return India ETF: Columbia India Consumer ETF (INCO)
- 1-Year Return: 19.12%
- Expense Ratio: 0.75%
- Dividend Yield: 0.21%
- Average Daily Volume (30 days): 12,757 shares
- Assets Under Management: $90.49 million
- Inception: August 10, 2011
- Issuer: Columbia Management Investment Advisers, LLC
INCO follows the Indxx India Consumer Index, which includes up to 30 consumer sector companies weighted by free-float market capitalization. The fund emphasizes consumer discretionary stocks (54.6%) complemented by consumer staples.
Leading holdings include Tata Motors Ltd., a key automotive manufacturer; Titan Company Ltd., known for watches, jewelry, and eyewear; and Nestle India Ltd., a major food products company.
Most Liquid India ETF: iShares MSCI India ETF (INDA)
- 1-Year Return: 10.8%
- Expense Ratio: 0.64%
- Dividend Yield: 0.38%
- Average Daily Volume (30 days): 2,042,496 shares
- Assets Under Management: $4.94 billion
- Inception: February 2, 2012
- Issuer: BlackRock
INDA tracks the MSCI India Index, which covers large- and mid-cap companies listed on NSE and BSE.
Its top holdings include Reliance Industries Ltd., ICICI Bank Ltd., a leading multinational financial services firm, and Housing Development Finance Corporation Ltd.
The information provided is for educational purposes only and should not be considered investment advice. Please review our warranty and liability disclaimer for details.
As of this writing, the author holds no positions in the mentioned ETFs.
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