Best US ETFs to invest in from India in 2026
Indian investors sent record amounts abroad under the Liberalised Remittance Scheme in the last financial year. A huge chunk of that money went into US exchange-traded funds — and for good reason. US ETFs give you instant access to companies like Apple, Microsoft, Nvidia, and Amazon through a single purchase, at a fraction of the cost of actively managed funds.
But with thousands of US ETFs available, picking the right ones matters. The wrong choice can quietly cost you lakhs over a decade through higher fees, poor tracking, or unnecessary concentration risk.
This guide breaks down the 7 best US ETFs for Indian investors in 2026, compares their costs and returns side by side, and covers the tax and regulatory details you need to know before investing.
Key takeaways
VOO and VTI are the strongest starting points — both charge just 0.03% annually and give broad US market exposure.
QQQ delivers higher returns (~18% annualised over 10 years) but carries more volatility due to its tech concentration.
Three S&P 500 ETFs (VOO, IVV, SPY) track the same index — the difference comes down to fees and liquidity.
Indian investors can start with as little as $1 through fractional shares, under the RBI's $250,000 annual LRS limit.
TCS-free threshold is now ₹10 lakh per financial year (effective April 2025), up from ₹7 lakh.
What are US ETFs, and why do Indian investors buy them?
An exchange-traded fund (ETF) is a basket of investments that trades on a stock exchange, just like an individual share. When you buy one unit of VOO, you instantly own a small piece of 500 leading American companies. When you buy VTI, that number jumps to over 3,700 companies.
US ETFs matter to Indian investors for a few practical reasons. The US market represents roughly 60% of global stock market capitalisation. Companies like Apple alone carry a market value exceeding $3 trillion — more than the GDP of most countries. Investing only in Indian markets means missing out on the innovation and scale that drives returns in technology, healthcare, AI, and semiconductors.
There is also the currency angle. Your investment sits in US dollars. Over the last 20 years, the rupee has depreciated against the dollar by roughly 3–4% annually. That depreciation adds to your returns when you convert back to rupees. Think of it as a built-in tailwind.
For a deeper look at how ETFs differ from
mutual funds, read our ETF vs mutual fund comparison.
The 7 best US ETFs for Indian investors
Here is a quick comparison before we dig into each fund.
| ETF | Index tracked | Expense ratio | AUM | 5-year annualised return | Holdings | Dividend yield |
|---|---|---|---|---|---|---|
| VOO | S&P 500 | 0.03% | ~$630B+ | ~14.5% | 504 | ~1.3% |
| VTI | CRSP US Total Market | 0.03% | ~$480B+ | ~14.0% | 3,700+ | ~1.3% |
| QQQ | Nasdaq-100 | 0.20% | ~$340B+ | ~20.0% | 101 | ~0.6% |
| IVV | S&P 500 | 0.03% | ~$590B+ | ~14.5% | 503 | ~1.3% |
| SPY | S&P 500 | 0.09% | ~$570B+ | ~14.4% | 503 | ~1.2% |
| SCHD | Dow Jones US Dividend 100 | 0.06% | ~$65B+ | ~12.0% | 104 | ~3.5% |
| VGT | MSCI US IMI Info Tech 25/50 | 0.10% | ~$80B+ | ~21.0% | 317 | ~0.6% |
Returns and AUM are approximate based on publicly available data as of early 2026. Past performance does not indicate future results.
Vanguard S&P 500 ETF (VOO)
VOO recently overtook SPY as the world's largest ETF by assets under management. That shift tells you everything about what long-term investors prioritise: low fees.
VOO tracks the S&P 500 — the 500 largest publicly traded US companies. Technology accounts for roughly 35% of the fund, followed by financials at 13% and healthcare at 12%. Top holdings include Microsoft, Apple, Nvidia, Amazon, and Meta.
At 0.03%, VOO charges one-third of what SPY charges for identical exposure. On a ₹10 lakh investment, that is the difference between paying roughly ₹250 per year versus ₹950. Compounded over 20 years, those extra basis points add up to lakhs.
VOO is the single best starting point for most Indian investors building US market exposure. It is diversified, dirt cheap, and backed by Vanguard — one of the world's largest asset managers.
Best for: Core long-term holdings, first-time US investors, anyone who wants broad S&P 500 exposure at the lowest possible cost.
Vanguard Total Stock Market ETF (VTI)
VTI does everything VOO does and then some. It tracks the CRSP US Total Market Index, which covers large-cap, mid-cap, and small-cap stocks — over 3,700 companies in total.
The extra 3,200 smaller companies give VTI a slight edge during market cycles when mid-cap and small-cap stocks outperform. In practice, the top holdings largely overlap with VOO, as the S&P 500 accounts for roughly 80% of total US market capitalisation.
The expense ratio is identical to VOO at 0.03%. VTI pays a quarterly dividend with a yield of around 1.3%. Average daily trading volume sits at roughly 2.4 million shares — more than adequate liquidity for individual investors.
If you want to choose just one US ETF and forget about it, VTI is arguably the most complete option. You get the entire US stock market in a single, low-cost purchase.
Best for: Investors who want total US market coverage, including small and mid-cap stocks, and one-fund portfolio builders.
Learn more about investing in US stocks through ETFs from India.
Invesco QQQ Trust (QQQ)
QQQ tracks the Nasdaq-100 — 101 of the largest non-financial companies listed on the Nasdaq stock exchange. This means a heavy tilt toward technology, communications, and consumer-discretionary sectors.
Technology alone accounts for roughly 53% of QQQ's portfolio. Top holdings include Apple, Microsoft, Nvidia, Amazon, Broadcom, and Meta. The fund's top 10 holdings make up nearly 50% of total assets, making it significantly more concentrated than VOO or VTI.
That concentration cuts both ways. QQQ's 10-year annualised return of roughly 18% has comfortably beaten the S&P 500's 13% over the same period. But QQQ has also experienced deeper drawdowns during tech sell-offs. If tech stumbles, QQQ feels it more acutely.
The expense ratio of 0.20% is higher than the S&P 500 ETFs but still well below the average ETF fee of 0.57%. QQQ ranks as one of the most heavily traded ETFs in the US, so liquidity is never a concern.
Best for: Growth-focused investors comfortable with higher volatility, those who believe in the long-term AI and tech cycle.
For a detailed breakdown of how QQQ compares against Indian-listed Nasdaq options, see our NASDAQ ETF vs index fund vs FoF comparison.
iShares Core S&P 500 ETF (IVV)
IVV is the quiet achiever among S&P 500 ETFs. Managed by BlackRock — the world's largest asset manager — IVV matches VOO's 0.03% expense ratio and tracks the same S&P 500 index.
IVV operates as an open-end fund, which gives it structural advantages over SPY's unit-investment trust structure. IVV can reinvest dividends immediately and engage in securities lending, both of which contribute to slightly tighter index tracking over time.
With assets exceeding $590 billion, IVV is the second-largest S&P 500 ETF globally. Average daily trading volume of roughly 7 million shares provides ample liquidity for most investors, though it trails SPY's massive 50–80 million daily volume.
For practical purposes, IVV and VOO are nearly interchangeable. If you already use BlackRock products or prefer iShares, IVV is an excellent choice.
Best for: Long-term investors seeking S&P 500 exposure through BlackRock's iShares platform and institutional portfolio builders.
SPDR S&P 500 ETF Trust (SPY)
SPY holds a special place in ETF history. Launched in January 1993, it was the first ETF ever listed in the United States. It remains the world's most-traded ETF, with daily trading volume often exceeding 50 million shares.
That extreme liquidity makes SPY the go-to for active traders and institutions who need razor-thin bid-ask spreads and instant execution. If you plan to trade frequently, SPY's liquidity is unmatched.
The catch is its 0.09% expense ratio — three times what VOO or IVV charges. For a buy-and-hold investor, that difference adds up. On a $100,000 investment held for 20 years, the fee gap between SPY and VOO can cost you over $2,000 in drag.
SPY's unit-investment-trust structure also prevents dividend reinvestment, creating a slight cash drag known as the "dividend slippage" effect.
Best for: Active traders who value liquidity above all else, institutional investors executing large block trades.
Schwab US Dividend Equity ETF (SCHD)
SCHD takes a different approach. Instead of tracking the broad market, it focuses on 104 high-quality, dividend-paying US companies with at least 10 consecutive years of dividend payments.
Holdings include names like Cisco, Chevron, Home Depot, BlackRock, and Verizon. The fund yields approximately 3.5%, making it one of the highest-yielding core ETFs available.
At 0.06%, SCHD remains very affordable. Five-year annualised returns of roughly 12% trail the S&P 500, but SCHD typically shows lower drawdowns during market corrections. Dividend-paying companies tend to be more financially stable and less volatile.
For Indian investors, there is a tax consideration: US dividends are subject to a 25% withholding tax, even with Form W-8BEN. On SCHD's higher yield, that withholding eats into a larger share of your returns than with growth-oriented ETFs. Factor this into your decision.
Best for: Income-focused investors, those nearing retirement or seeking lower-volatility US exposure, and investors who want regular cash flow.
Vanguard Information Technology ETF (VGT)
VGT casts a wider net than QQQ by holding roughly 317 tech stocks instead of 101. It includes mid-cap software, IT services, and payments companies that are not in the Nasdaq-100.
The expense ratio of 0.10% keeps costs moderate. Five-year annualised returns of around 21% reflect the technology sector's dominance. Top holdings include Apple, Microsoft, Nvidia, and Broadcom — similar to QQQ — but with greater depth in the second- and third-tier tech companies.
VGT is for investors seeking concentrated tech exposure without putting everything into the Magnificent Seven. The additional holdings reduce single-stock risk while keeping you firmly in the sector driving the AI infrastructure boom.
Best for: Investors seeking broad technology-sector exposure beyond the Nasdaq-100, and those building a satellite tech allocation alongside a core VOO or VTI position.
Explore more sectors and thematic options in our guide to thematic investing.
VOO vs SPY vs IVV: Which S&P 500 ETF should you pick?
All three track the same index with nearly identical returns. The decision comes down to just two factors.
| Factor | VOO | IVV | SPY |
|---|---|---|---|
| Expense ratio | 0.03% | 0.03% | 0.09% |
| Fund structure | Open-end | Open-end | Unit investment trust |
| Dividend reinvestment | Yes | Yes | No (cash drag) |
| Avg daily volume | ~5M shares | ~7M shares | ~50–80M shares |
| AUM | ~$630B+ | ~$590B+ | ~$570B+ |
| Best for | Buy-and-hold | Buy-and-hold | Active trading |
If you are a long-term investor, pick VOO or IVV. You save 0.06% annually and benefit from a better fund structure. If you trade actively or need maximum liquidity, SPY is the clear winner.
How to invest in US ETFs from India
The process has become remarkably straightforward.
Step 1: Open an account with an international investing platform that provides access to US exchanges. Platforms like Winvesta give you access to over 11,000 US stocks and ETFs — the widest selection available to Indian investors.
Step 2: Complete your KYC by submitting your PAN card, Aadhaar or passport, and proof of address. You will also need to fill out Form W-8BEN to reduce US dividend withholding tax.
Step 3: Fund your account by remitting money under the RBI's Liberalised Remittance Scheme (LRS). The annual limit is $250,000 per person per financial year.
Step 4: Buy your ETFs. Many platforms offer fractional shares, so you can invest as little as $1 — no need to buy a full share of VOO at ~$530.
For a complete walkthrough, read our beginner's guide to US ETF investing from India.
Tax and regulatory rules for Indian investors
Getting the investment side right is only half the job. Understanding the tax implications avoids surprises at filing time.
LRS and TCS
The RBI allows each resident Indian to remit up to $250,000 per financial year under LRS. From April 2025, the TCS-free threshold on foreign remittances is ₹10 lakh (previously ₹7 lakh). Above ₹10 lakh, TCS is 20% on investment remittances.
TCS is not an additional tax. It is a prepaid tax that your bank deducts at the time of remittance. You claim it back or adjust it against your tax liability when filing your ITR.
Capital gains tax
Capital gains on US ETFs are taxed as foreign assets in India.
| Holding period | Tax rate | Classification |
|---|---|---|
| Under 24 months | Your income tax slab rate | Short-term capital gains |
| Over 24 months | 12.5% (no indexation from April 2025) | Long-term capital gains |
Dividend tax
US dividends face a 25% withholding tax at source (with Form W-8BEN filed). In India, dividends are added to your income and taxed at your slab rate. Under the India-US Double Taxation Avoidance Agreement (DTAA), you can claim credit for the US tax already paid.
Reporting requirements
All foreign assets must be disclosed in Schedule FA of your Indian ITR. This includes the total value of your US ETF holdings, dividends received, and any capital gains realised during the year.
For a detailed look at how different platforms handle taxes and compliance, check our comparison of the best platforms for US ETF investing.
How to choose the right US ETF for your goals
Your ideal mix depends on three things: time horizon, risk tolerance, and income needs.
Building long-term wealth (10+ years): Start with VOO or VTI as 60–70% of your US allocation. Add QQQ or VGT at 20–30% for a growth tilt. This blend captures broad market returns with an extra push from the tech sector.
Income and stability: Pair SCHD with VOO. SCHD delivers regular dividends from high-quality companies while VOO provides the growth engine. This combination offers lower volatility than an all-growth portfolio.
Maximum diversification: VTI alone covers the entire US stock market. Pair it with an international ETF like VT (Vanguard Total World Stock) if you want global coverage in just two funds.
A simple starter portfolio: Invest 70% in VOO and 30% in QQQ. In three to five years, review and rebalance based on how your goals have evolved.
Discover more about why international ETF investing matters and explore our top 10 US ETFs for 2026 for more picks beyond this list.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs
Indian investors sent record amounts abroad under the Liberalised Remittance Scheme in the last financial year. A huge chunk of that money went into US exchange-traded funds — and for good reason. US ETFs give you instant access to companies like Apple, Microsoft, Nvidia, and Amazon through a single purchase, at a fraction of the cost of actively managed funds.
But with thousands of US ETFs available, picking the right ones matters. The wrong choice can quietly cost you lakhs over a decade through higher fees, poor tracking, or unnecessary concentration risk.
This guide breaks down the 7 best US ETFs for Indian investors in 2026, compares their costs and returns side by side, and covers the tax and regulatory details you need to know before investing.
Key takeaways
VOO and VTI are the strongest starting points — both charge just 0.03% annually and give broad US market exposure.
QQQ delivers higher returns (~18% annualised over 10 years) but carries more volatility due to its tech concentration.
Three S&P 500 ETFs (VOO, IVV, SPY) track the same index — the difference comes down to fees and liquidity.
Indian investors can start with as little as $1 through fractional shares, under the RBI's $250,000 annual LRS limit.
TCS-free threshold is now ₹10 lakh per financial year (effective April 2025), up from ₹7 lakh.
What are US ETFs, and why do Indian investors buy them?
An exchange-traded fund (ETF) is a basket of investments that trades on a stock exchange, just like an individual share. When you buy one unit of VOO, you instantly own a small piece of 500 leading American companies. When you buy VTI, that number jumps to over 3,700 companies.
US ETFs matter to Indian investors for a few practical reasons. The US market represents roughly 60% of global stock market capitalisation. Companies like Apple alone carry a market value exceeding $3 trillion — more than the GDP of most countries. Investing only in Indian markets means missing out on the innovation and scale that drives returns in technology, healthcare, AI, and semiconductors.
There is also the currency angle. Your investment sits in US dollars. Over the last 20 years, the rupee has depreciated against the dollar by roughly 3–4% annually. That depreciation adds to your returns when you convert back to rupees. Think of it as a built-in tailwind.
For a deeper look at how ETFs differ from
mutual funds, read our ETF vs mutual fund comparison.
The 7 best US ETFs for Indian investors
Here is a quick comparison before we dig into each fund.
| ETF | Index tracked | Expense ratio | AUM | 5-year annualised return | Holdings | Dividend yield |
|---|---|---|---|---|---|---|
| VOO | S&P 500 | 0.03% | ~$630B+ | ~14.5% | 504 | ~1.3% |
| VTI | CRSP US Total Market | 0.03% | ~$480B+ | ~14.0% | 3,700+ | ~1.3% |
| QQQ | Nasdaq-100 | 0.20% | ~$340B+ | ~20.0% | 101 | ~0.6% |
| IVV | S&P 500 | 0.03% | ~$590B+ | ~14.5% | 503 | ~1.3% |
| SPY | S&P 500 | 0.09% | ~$570B+ | ~14.4% | 503 | ~1.2% |
| SCHD | Dow Jones US Dividend 100 | 0.06% | ~$65B+ | ~12.0% | 104 | ~3.5% |
| VGT | MSCI US IMI Info Tech 25/50 | 0.10% | ~$80B+ | ~21.0% | 317 | ~0.6% |
Returns and AUM are approximate based on publicly available data as of early 2026. Past performance does not indicate future results.
Vanguard S&P 500 ETF (VOO)
VOO recently overtook SPY as the world's largest ETF by assets under management. That shift tells you everything about what long-term investors prioritise: low fees.
VOO tracks the S&P 500 — the 500 largest publicly traded US companies. Technology accounts for roughly 35% of the fund, followed by financials at 13% and healthcare at 12%. Top holdings include Microsoft, Apple, Nvidia, Amazon, and Meta.
At 0.03%, VOO charges one-third of what SPY charges for identical exposure. On a ₹10 lakh investment, that is the difference between paying roughly ₹250 per year versus ₹950. Compounded over 20 years, those extra basis points add up to lakhs.
VOO is the single best starting point for most Indian investors building US market exposure. It is diversified, dirt cheap, and backed by Vanguard — one of the world's largest asset managers.
Best for: Core long-term holdings, first-time US investors, anyone who wants broad S&P 500 exposure at the lowest possible cost.
Vanguard Total Stock Market ETF (VTI)
VTI does everything VOO does and then some. It tracks the CRSP US Total Market Index, which covers large-cap, mid-cap, and small-cap stocks — over 3,700 companies in total.
The extra 3,200 smaller companies give VTI a slight edge during market cycles when mid-cap and small-cap stocks outperform. In practice, the top holdings largely overlap with VOO, as the S&P 500 accounts for roughly 80% of total US market capitalisation.
The expense ratio is identical to VOO at 0.03%. VTI pays a quarterly dividend with a yield of around 1.3%. Average daily trading volume sits at roughly 2.4 million shares — more than adequate liquidity for individual investors.
If you want to choose just one US ETF and forget about it, VTI is arguably the most complete option. You get the entire US stock market in a single, low-cost purchase.
Best for: Investors who want total US market coverage, including small and mid-cap stocks, and one-fund portfolio builders.
Learn more about investing in US stocks through ETFs from India.
Invesco QQQ Trust (QQQ)
QQQ tracks the Nasdaq-100 — 101 of the largest non-financial companies listed on the Nasdaq stock exchange. This means a heavy tilt toward technology, communications, and consumer-discretionary sectors.
Technology alone accounts for roughly 53% of QQQ's portfolio. Top holdings include Apple, Microsoft, Nvidia, Amazon, Broadcom, and Meta. The fund's top 10 holdings make up nearly 50% of total assets, making it significantly more concentrated than VOO or VTI.
That concentration cuts both ways. QQQ's 10-year annualised return of roughly 18% has comfortably beaten the S&P 500's 13% over the same period. But QQQ has also experienced deeper drawdowns during tech sell-offs. If tech stumbles, QQQ feels it more acutely.
The expense ratio of 0.20% is higher than the S&P 500 ETFs but still well below the average ETF fee of 0.57%. QQQ ranks as one of the most heavily traded ETFs in the US, so liquidity is never a concern.
Best for: Growth-focused investors comfortable with higher volatility, those who believe in the long-term AI and tech cycle.
For a detailed breakdown of how QQQ compares against Indian-listed Nasdaq options, see our NASDAQ ETF vs index fund vs FoF comparison.
iShares Core S&P 500 ETF (IVV)
IVV is the quiet achiever among S&P 500 ETFs. Managed by BlackRock — the world's largest asset manager — IVV matches VOO's 0.03% expense ratio and tracks the same S&P 500 index.
IVV operates as an open-end fund, which gives it structural advantages over SPY's unit-investment trust structure. IVV can reinvest dividends immediately and engage in securities lending, both of which contribute to slightly tighter index tracking over time.
With assets exceeding $590 billion, IVV is the second-largest S&P 500 ETF globally. Average daily trading volume of roughly 7 million shares provides ample liquidity for most investors, though it trails SPY's massive 50–80 million daily volume.
For practical purposes, IVV and VOO are nearly interchangeable. If you already use BlackRock products or prefer iShares, IVV is an excellent choice.
Best for: Long-term investors seeking S&P 500 exposure through BlackRock's iShares platform and institutional portfolio builders.
SPDR S&P 500 ETF Trust (SPY)
SPY holds a special place in ETF history. Launched in January 1993, it was the first ETF ever listed in the United States. It remains the world's most-traded ETF, with daily trading volume often exceeding 50 million shares.
That extreme liquidity makes SPY the go-to for active traders and institutions who need razor-thin bid-ask spreads and instant execution. If you plan to trade frequently, SPY's liquidity is unmatched.
The catch is its 0.09% expense ratio — three times what VOO or IVV charges. For a buy-and-hold investor, that difference adds up. On a $100,000 investment held for 20 years, the fee gap between SPY and VOO can cost you over $2,000 in drag.
SPY's unit-investment-trust structure also prevents dividend reinvestment, creating a slight cash drag known as the "dividend slippage" effect.
Best for: Active traders who value liquidity above all else, institutional investors executing large block trades.
Schwab US Dividend Equity ETF (SCHD)
SCHD takes a different approach. Instead of tracking the broad market, it focuses on 104 high-quality, dividend-paying US companies with at least 10 consecutive years of dividend payments.
Holdings include names like Cisco, Chevron, Home Depot, BlackRock, and Verizon. The fund yields approximately 3.5%, making it one of the highest-yielding core ETFs available.
At 0.06%, SCHD remains very affordable. Five-year annualised returns of roughly 12% trail the S&P 500, but SCHD typically shows lower drawdowns during market corrections. Dividend-paying companies tend to be more financially stable and less volatile.
For Indian investors, there is a tax consideration: US dividends are subject to a 25% withholding tax, even with Form W-8BEN. On SCHD's higher yield, that withholding eats into a larger share of your returns than with growth-oriented ETFs. Factor this into your decision.
Best for: Income-focused investors, those nearing retirement or seeking lower-volatility US exposure, and investors who want regular cash flow.
Vanguard Information Technology ETF (VGT)
VGT casts a wider net than QQQ by holding roughly 317 tech stocks instead of 101. It includes mid-cap software, IT services, and payments companies that are not in the Nasdaq-100.
The expense ratio of 0.10% keeps costs moderate. Five-year annualised returns of around 21% reflect the technology sector's dominance. Top holdings include Apple, Microsoft, Nvidia, and Broadcom — similar to QQQ — but with greater depth in the second- and third-tier tech companies.
VGT is for investors seeking concentrated tech exposure without putting everything into the Magnificent Seven. The additional holdings reduce single-stock risk while keeping you firmly in the sector driving the AI infrastructure boom.
Best for: Investors seeking broad technology-sector exposure beyond the Nasdaq-100, and those building a satellite tech allocation alongside a core VOO or VTI position.
Explore more sectors and thematic options in our guide to thematic investing.
VOO vs SPY vs IVV: Which S&P 500 ETF should you pick?
All three track the same index with nearly identical returns. The decision comes down to just two factors.
| Factor | VOO | IVV | SPY |
|---|---|---|---|
| Expense ratio | 0.03% | 0.03% | 0.09% |
| Fund structure | Open-end | Open-end | Unit investment trust |
| Dividend reinvestment | Yes | Yes | No (cash drag) |
| Avg daily volume | ~5M shares | ~7M shares | ~50–80M shares |
| AUM | ~$630B+ | ~$590B+ | ~$570B+ |
| Best for | Buy-and-hold | Buy-and-hold | Active trading |
If you are a long-term investor, pick VOO or IVV. You save 0.06% annually and benefit from a better fund structure. If you trade actively or need maximum liquidity, SPY is the clear winner.
How to invest in US ETFs from India
The process has become remarkably straightforward.
Step 1: Open an account with an international investing platform that provides access to US exchanges. Platforms like Winvesta give you access to over 11,000 US stocks and ETFs — the widest selection available to Indian investors.
Step 2: Complete your KYC by submitting your PAN card, Aadhaar or passport, and proof of address. You will also need to fill out Form W-8BEN to reduce US dividend withholding tax.
Step 3: Fund your account by remitting money under the RBI's Liberalised Remittance Scheme (LRS). The annual limit is $250,000 per person per financial year.
Step 4: Buy your ETFs. Many platforms offer fractional shares, so you can invest as little as $1 — no need to buy a full share of VOO at ~$530.
For a complete walkthrough, read our beginner's guide to US ETF investing from India.
Tax and regulatory rules for Indian investors
Getting the investment side right is only half the job. Understanding the tax implications avoids surprises at filing time.
LRS and TCS
The RBI allows each resident Indian to remit up to $250,000 per financial year under LRS. From April 2025, the TCS-free threshold on foreign remittances is ₹10 lakh (previously ₹7 lakh). Above ₹10 lakh, TCS is 20% on investment remittances.
TCS is not an additional tax. It is a prepaid tax that your bank deducts at the time of remittance. You claim it back or adjust it against your tax liability when filing your ITR.
Capital gains tax
Capital gains on US ETFs are taxed as foreign assets in India.
| Holding period | Tax rate | Classification |
|---|---|---|
| Under 24 months | Your income tax slab rate | Short-term capital gains |
| Over 24 months | 12.5% (no indexation from April 2025) | Long-term capital gains |
Dividend tax
US dividends face a 25% withholding tax at source (with Form W-8BEN filed). In India, dividends are added to your income and taxed at your slab rate. Under the India-US Double Taxation Avoidance Agreement (DTAA), you can claim credit for the US tax already paid.
Reporting requirements
All foreign assets must be disclosed in Schedule FA of your Indian ITR. This includes the total value of your US ETF holdings, dividends received, and any capital gains realised during the year.
For a detailed look at how different platforms handle taxes and compliance, check our comparison of the best platforms for US ETF investing.
How to choose the right US ETF for your goals
Your ideal mix depends on three things: time horizon, risk tolerance, and income needs.
Building long-term wealth (10+ years): Start with VOO or VTI as 60–70% of your US allocation. Add QQQ or VGT at 20–30% for a growth tilt. This blend captures broad market returns with an extra push from the tech sector.
Income and stability: Pair SCHD with VOO. SCHD delivers regular dividends from high-quality companies while VOO provides the growth engine. This combination offers lower volatility than an all-growth portfolio.
Maximum diversification: VTI alone covers the entire US stock market. Pair it with an international ETF like VT (Vanguard Total World Stock) if you want global coverage in just two funds.
A simple starter portfolio: Invest 70% in VOO and 30% in QQQ. In three to five years, review and rebalance based on how your goals have evolved.
Discover more about why international ETF investing matters and explore our top 10 US ETFs for 2026 for more picks beyond this list.
Disclaimer: The views and recommendations made above are those of individual analysts or brokerage companies, and not of Winvesta. We advise investors to check with certified experts before making any investment decisions.
Ready to earn on every trade?
Invest in 11,000+ US stocks & ETFs
