Best Overseas ETFs for Indian Investors in 2024

Indian investors hold less than 1% of their financial assets in international equities, while the United States alone is over 60% of the global stock market. That gap is the entire reason overseas ETFs in India exist — they are the simplest legal way for an Indian resident to get currency-hedged exposure to companies like Apple, Microsoft, and Nvidia without opening a US brokerage account or wrestling with LRS paperwork.

Below are the strongest options available on Indian exchanges, ranked by track record, expense ratio, liquidity, and the strategic role they play in a portfolio. The number-one pick is at the top.

1. Motilal Oswal Nasdaq 100 ETF — the clear #1

If you can only own one overseas ETF, this is it. The fund tracks the Nasdaq 100 index, giving you exposure to the 100 largest non-financial companies on the Nasdaq exchange. That includes Apple, Microsoft, Amazon, Meta, Nvidia, Tesla, and Google.

• Why good: oldest international ETF in India (launched 2011), deepest liquidity, expense ratio under 0.60%.
• Who for: long-term investors who want core US tech exposure as a complement to their Indian portfolio.
• Watch out: heavy concentration in technology — expect sharp drawdowns when tech corrects.

The Nasdaq 100 has compounded at about 14% annually in dollar terms over the last 15 years. Even after rupee depreciation, returns translate beautifully for Indian investors.

2. Mirae Asset NYSE FANG+ ETF

This is a more concentrated version of US tech — just 10 stocks including the FAANG names plus Tesla, Nvidia, Microsoft, and Snowflake. Higher conviction, higher risk, higher reward when these names run.

• Why good: pure-play exposure to the strongest US growth stocks. Has often outperformed Nasdaq 100 in bull phases.
• Who for: aggressive investors who already own a broader index fund and want a satellite bet on tech leaders.
• Watch out: 10-stock portfolio means single-stock blow-ups hurt badly.

3. Motilal Oswal S&P 500 Index Fund

The most diversified US exposure available to Indian investors. Tracks the S&P 500, representing the 500 largest US companies across all sectors — not just tech.

• Why good: broadest possible US exposure, lowest volatility among US-focused funds in India.
• Who for: investors building their first international position or those nervous about tech concentration.
• Watch out: technically a fund of fund (FoF), not an ETF — NAV-based, no real-time trading.

4. Nippon India ETF Hang Seng BeES

Tracks the Hang Seng Index of large-cap Hong Kong-listed companies, including Tencent, Alibaba, and Meituan. The only meaningful China exposure available on Indian exchanges.

• Why good: cheapest valuations among major global indices in recent years, diversification away from US.
• Who for: contrarian investors who believe in China’s long-term consumer story.
• Watch out: China policy risk is real and unpredictable. Not for nervous investors.

5. ICICI Prudential US Bluechip Equity Fund

An actively managed fund (not a passive ETF) that picks 30-40 large US stocks. Higher expense ratio than the index ETFs, but the manager has historically navigated US sector rotations well.

• Why good: active stock-picking can add value in choppy markets where passive lags.
• Who for: investors who want US exposure but distrust pure indexing.
• Watch out: 2.0%+ expense ratio eats compounding over 20 years.

The criteria used to rank these

Picking an overseas ETF is not just about chasing past returns. The five filters that matter:

1. Total expense ratio — below 1% for index funds, below 2.5% for active funds.
2. Liquidity on the Indian exchange — measured by daily traded value, not just AUM.
3. Tracking error — how closely the ETF mirrors its index. Below 0.5% is healthy.
4. Underlying index quality — broad indices beat narrow ones for first-time international investors.
5. SEBI overseas investment limit status — some ETFs occasionally pause new lump-sum investments when the industry hits the 7 billion dollar cap.

How taxation works on overseas ETFs

This is where most investors get surprised. Overseas ETFs are treated as non-equity for Indian tax purposes (like debt funds), even though they hold equities abroad.

• Held over 24 months: long-term capital gains taxed at slab rate with indexation if applicable.
• Held under 24 months: short-term capital gains taxed at slab rate.
• No STT applies, but TER and currency conversion costs already build in some friction.

Plan with this in mind. The post-tax return on a Nasdaq 100 ETF held for 8 years is materially lower than a holding-period of 25 years — the tax drag matters.

How much overseas exposure should an Indian investor have?

For most retail investors, 10-20% of equity allocation is enough. Below 10% has no portfolio impact. Above 30% turns the rupee into a constant FX bet. The right answer depends on your foreign-currency liabilities (foreign education, overseas travel, NRI children) and your time horizon.

Treat the allocation as a discipline, not a forecast. Rebalance once a year and trim winners back to the target band. Skipping the rebalance is what turns a healthy 15% sleeve into a 35% concentration after a strong US run.

The Motilal Oswal Nasdaq 100 ETF remains the cleanest, deepest, lowest-cost choice for the bulk of an Indian investor’s overseas allocation. Pair it with the S&P 500 fund if you want broader US exposure, and consider Hang Seng only as a small contrarian sleeve. Track current SEBI limits and AMC notifications at sebi.gov.in before placing a fresh lump-sum order.