Complete beginner's guide to US ETF investing from India in 2026
Indian investors sent over $27 billion abroad under the RBI's Liberalised Remittance Scheme in the last financial year alone. A large share of that money went straight into U.S. exchange-traded funds. If you have been curious about US ETF investing from India, this guide walks you through every step.
What are ETFs and why should Indian investors care?
An ETF, or exchange-traded fund, is a basket of stocks that trades on a stock exchange like a single share. When you buy one unit of the Vanguard S&P 500 ETF (VOO), you instantly own a tiny piece of 500 leading American companies. Think Apple, Microsoft, NVIDIA, Amazon, and Meta — all in one click.
ETFs combine the diversification of a mutual fund with the flexibility of a stock. You can buy or sell them anytime during market hours at real-time prices. Unlike Indian mutual funds that price once a day, ETFs let you act the moment you decide.
Here is why this matters specifically for Indian investors. India accounts for only about 3–4% of the global stock market value. The U.S. market alone accounts for nearly half of international equity, valued at over $50 trillion. By sticking only to Indian stocks, you miss exposure to roughly 96% of global markets.
The benefits of U.S. ETU.S.vesting extend beyond access. You also gain exposure to sectors such as semiconductors, cloud computing, biotech, and artificial intelligence, which are barely represented on Indian exchanges. The seven largest U.S. tech companies alone are worth more than the entire Indian stock market combined. Owning even a small slice of this ecosystem gives your portfolio a global edgU.S.
Why U.S. ETFs deserve a spot in your portfolio?
Your money works in two currencies at once. The Indian rupee has lost roughly 3–3.5% againU.S. the U.S. dollar every year over the past two decades. This means your US ETF returns get an automatic currency boost when converted back to rupees. A 10% gain in dollar terms becomes roughly 13% in rupee terms.
Costs are shockingly low. VOO charges an expense ratio of just 0.03% per year. Compare that with 1.5–2.5% for a typical Indian actively managed equity mutual fund. Over 20 years, with a ₹10 lakh investment growing at 10%, the fund, charging 0.03%, grows to roughly ₹67 lakh. The one charging 1.5% reaches only ₹55 lakh. That ₹12 lakh gap comes entirely from fees, eating into your compounding.
Diversification actually reduces risk. The historical correlation between the Nifty 50 and S&P 500 sits around 0.30–0.55. U.S. ETU.S. and an Indian portfolio can reduce volatility by 2–4 percentage points without compromising returns.
The track record speaks for itself. The S&P 500 has delivered roughly 10% annualised returns since 1926. Over any rolling 20-year period, it has never produced a negative result. That kind of consistency is rare in any asset class.
Learn more about why you should consider investing in foreign stocks as an Indian investor.
When you weigh EETFs vs. mutual funds in India, the direct US ETF route wins on cost, transparency, and real-time trading. Indian feeder funds that track U.S. inU.S.s charge 0.5–0.6% and often underperform due to tracking errors. One widely cited comparison showed a popular Indian Nasdaq-100 feeder fund lagging the actual Nasdaq-100 by about 16% over five years.
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How to invest in U.S. ETFs from India: step-by-step process
Wondering how to invest in a US ETF from India? The process has become remarkably simple. Here is precisely what you need to do.
Step 1: Pick a platform. Choose an international investing platform like Winvesta, Vested Finance, INDmoney, or Interactive Brokers. Each of the U.S. brokerage accounts in your name is with a regulated American broker-dealer.
Step 2: Complete your KYC. Submit your PAN card, Aadhaar or passport, and proof of address. Most platforms verify your identity through a quick selfie or video. Approval typically takes minutes.
Step 3: Fill the W-8BEN form. This digital form confirms your status as a foreign investor. It reduces the U.S. dividend withholding tax from 30% to 25% under the India-US tax treaty.
Step 4: Fund your account. Transfer rupees from your Indian bank account. Your bank converts INR to USD under the RBI's Liberalised Remittance Scheme and sends the dollars to your brokerage. Major banks like HDFC, ICICI, SBI, and Axis support this process online.
Step 5: Buy your first ETF. Search for the ETF you want, enter a dollar amount, and place your order. Fractional shares let you start with as little as $1. U.S. markets operate from 7:00 PM to 1:30 AM IST.
Step 6: Track and grow. Monitor your portfolio in both USD and INR. Add money regularly through a disciplined approach to build wealth over time.
Key requirements you need before you start
Before your first trade, gather these documents and essentials.A
PAN card is mandatory for every LRS transaction. The RBI requires it for all foreign remittances, regardless of amount.
Aadhaar card or passport serves as your identity and address proof. Some platforms accept either; others require a passport specifically.
An Indian bank account that can receive foreign remittances is essential. Most salary accounts at major banks already support this. You will fill out Form A2 for each remittance through your bank.
For amounts above ₹5 lakh, your chartered accountant must provide Form 15CB, and you need to file Form 15CA as a self-declaration.
You do not need a U.S. bank account, a U.S. Social Security number, or any American documentation. The entire process is conducted in India, using Indian documents.
Before you begin, it also helps to understand the tax implications for Indian residents investing in the U.S. stock market.
How much money do you actually need?
The minimum investment required for US ETF India platforms might surprise you. Thanks to fractional shares, you can start with just $1 — roughly ₹85–88 at current exchange rates.
Fractional shares changed the game completely. A single share of VOO costs around $530. But you do not need $530 to own it. You can invest $5 and own 0.009 shares with full proportional rights to returns and dividends.
The RBI allows you to send up to $250,000 per person per financial year under LRS. That ceiling applies across all purposes, including investments, travel, and gifts. For most retail investors, this limit is more than enough.
Here is what the tax on remittance looks like. The government collects TCS (Tax Collected at Source) at 20% on investment remittances above ₹7 lakh per financial year. This may seem steep, but TCS is not an additional tax. It is an advance payment that appears in your Form 26AS. You claim it back fully when filing your income tax return.
Understanding taxes on your US ETF gains
Capital gains tax on U.S. ETFs follows clear rules after the 2024 budget overhaul.
Hold your ETF for more than 24 months, and you pay long-term capital gains tax at a flat 12.5% with no indexation benefit. Sell before 24 months, and short-term gains get taxed at your regular income tax slab rate. This is simpler than the old system, which charged a 20% indexation rate on foreign assets held for more than 36 months.
U.S. dividends face a 25% withholding tax at source under the India-US Double Taxation Avoidance Agreement. You can claim credit for this amount against your Indian tax liability by filing Form 67 before your ITR. This prevents you from paying tax twice on the same income. The treaty also ensures you do not pay capital gains tax in the U.S. at all. Only India taxes your profits from the sale of U.S. ETFs.
Five myths that stop Indian investors
Myth 1: You need lakhs to start. Reality: $1 is enough. Fractional shares make any amount viable.
Myth 2: The process is complicated. Reality: Sign up, complete KYC, fund your account, and buy. The onboarding process typically takes about 15 minutes on most apps.
Myth 3: U.S. markets are not safe for Indians. Reality: The SEC, FINRA, and SIPC protect your investments up to $500,000 per brokerage account. U.S. investor protection standards rank among the strongest globally.
Myth 4: Taxes make it not worth the effort. Reality: At 12.5% long-term tax and full TCS refunds, the tax structure is straightforward and competitive. Platforms generate tax reports automatically.
Myth 5: You need a U.S. bank account. Reality: You invest directly from your Indian bank. Your brokerage holds securities in your name. Withdrawals return straight to your Indian account.
Is it safe to invest in U.S. ETFs from India? Absolutely. Between SIPC insurance, SEC regulation, and the India-US tax treaty protections, Indian investors enjoy robust safeguards at every step.
Popular U.S. ETFs for Indian investors to consider
U.S. ETFs for Indian investors looking to start should focus on broad, low-cost index funds. VOO and VTI from Vanguard track the S&P 500 and the total U.S. stock market, respectively. Both charge just 0.03% annually and give you exposure to hundreds of companies in a single purchase.
For a technology tilt, QQQ tracks the Nasdaq-100 and has delivered roughly 17–18% annualised returns over the past decade, including heavyweight names such as Apple, Microsoft, NVIDIA, Amazon, and Meta. SCHD offers a more conservative option, focusing on high-quality dividend-paying companies with a yield near 3.5%. It suits investors seeking regular income alongside capital growth.
A simple starter portfolio could combine VOO for broad market exposure with QQQ for growth. Add SCHD if you want regular dividend income. Three ETFs can give you access to thousands of American companies across every primary sector. You do not need to pick individual stocks or time the market. Just invest consistently and let compounding do the work.
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.
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Table of Contents
No h1 or h2 headings found in this article.
Indian investors sent over $27 billion abroad under the RBI's Liberalised Remittance Scheme in the last financial year alone. A large share of that money went straight into U.S. exchange-traded funds. If you have been curious about US ETF investing from India, this guide walks you through every step.
What are ETFs and why should Indian investors care?
An ETF, or exchange-traded fund, is a basket of stocks that trades on a stock exchange like a single share. When you buy one unit of the Vanguard S&P 500 ETF (VOO), you instantly own a tiny piece of 500 leading American companies. Think Apple, Microsoft, NVIDIA, Amazon, and Meta — all in one click.
ETFs combine the diversification of a mutual fund with the flexibility of a stock. You can buy or sell them anytime during market hours at real-time prices. Unlike Indian mutual funds that price once a day, ETFs let you act the moment you decide.
Here is why this matters specifically for Indian investors. India accounts for only about 3–4% of the global stock market value. The U.S. market alone accounts for nearly half of international equity, valued at over $50 trillion. By sticking only to Indian stocks, you miss exposure to roughly 96% of global markets.
The benefits of U.S. ETU.S.vesting extend beyond access. You also gain exposure to sectors such as semiconductors, cloud computing, biotech, and artificial intelligence, which are barely represented on Indian exchanges. The seven largest U.S. tech companies alone are worth more than the entire Indian stock market combined. Owning even a small slice of this ecosystem gives your portfolio a global edgU.S.
Why U.S. ETFs deserve a spot in your portfolio?
Your money works in two currencies at once. The Indian rupee has lost roughly 3–3.5% againU.S. the U.S. dollar every year over the past two decades. This means your US ETF returns get an automatic currency boost when converted back to rupees. A 10% gain in dollar terms becomes roughly 13% in rupee terms.
Costs are shockingly low. VOO charges an expense ratio of just 0.03% per year. Compare that with 1.5–2.5% for a typical Indian actively managed equity mutual fund. Over 20 years, with a ₹10 lakh investment growing at 10%, the fund, charging 0.03%, grows to roughly ₹67 lakh. The one charging 1.5% reaches only ₹55 lakh. That ₹12 lakh gap comes entirely from fees, eating into your compounding.
Diversification actually reduces risk. The historical correlation between the Nifty 50 and S&P 500 sits around 0.30–0.55. U.S. ETU.S. and an Indian portfolio can reduce volatility by 2–4 percentage points without compromising returns.
The track record speaks for itself. The S&P 500 has delivered roughly 10% annualised returns since 1926. Over any rolling 20-year period, it has never produced a negative result. That kind of consistency is rare in any asset class.
Learn more about why you should consider investing in foreign stocks as an Indian investor.
When you weigh EETFs vs. mutual funds in India, the direct US ETF route wins on cost, transparency, and real-time trading. Indian feeder funds that track U.S. inU.S.s charge 0.5–0.6% and often underperform due to tracking errors. One widely cited comparison showed a popular Indian Nasdaq-100 feeder fund lagging the actual Nasdaq-100 by about 16% over five years.
[CONTENT IMAGE 1 PLACEMENT]
How to invest in U.S. ETFs from India: step-by-step process
Wondering how to invest in a US ETF from India? The process has become remarkably simple. Here is precisely what you need to do.
Step 1: Pick a platform. Choose an international investing platform like Winvesta, Vested Finance, INDmoney, or Interactive Brokers. Each of the U.S. brokerage accounts in your name is with a regulated American broker-dealer.
Step 2: Complete your KYC. Submit your PAN card, Aadhaar or passport, and proof of address. Most platforms verify your identity through a quick selfie or video. Approval typically takes minutes.
Step 3: Fill the W-8BEN form. This digital form confirms your status as a foreign investor. It reduces the U.S. dividend withholding tax from 30% to 25% under the India-US tax treaty.
Step 4: Fund your account. Transfer rupees from your Indian bank account. Your bank converts INR to USD under the RBI's Liberalised Remittance Scheme and sends the dollars to your brokerage. Major banks like HDFC, ICICI, SBI, and Axis support this process online.
Step 5: Buy your first ETF. Search for the ETF you want, enter a dollar amount, and place your order. Fractional shares let you start with as little as $1. U.S. markets operate from 7:00 PM to 1:30 AM IST.
Step 6: Track and grow. Monitor your portfolio in both USD and INR. Add money regularly through a disciplined approach to build wealth over time.
Key requirements you need before you start
Before your first trade, gather these documents and essentials.A
PAN card is mandatory for every LRS transaction. The RBI requires it for all foreign remittances, regardless of amount.
Aadhaar card or passport serves as your identity and address proof. Some platforms accept either; others require a passport specifically.
An Indian bank account that can receive foreign remittances is essential. Most salary accounts at major banks already support this. You will fill out Form A2 for each remittance through your bank.
For amounts above ₹5 lakh, your chartered accountant must provide Form 15CB, and you need to file Form 15CA as a self-declaration.
You do not need a U.S. bank account, a U.S. Social Security number, or any American documentation. The entire process is conducted in India, using Indian documents.
Before you begin, it also helps to understand the tax implications for Indian residents investing in the U.S. stock market.
How much money do you actually need?
The minimum investment required for US ETF India platforms might surprise you. Thanks to fractional shares, you can start with just $1 — roughly ₹85–88 at current exchange rates.
Fractional shares changed the game completely. A single share of VOO costs around $530. But you do not need $530 to own it. You can invest $5 and own 0.009 shares with full proportional rights to returns and dividends.
The RBI allows you to send up to $250,000 per person per financial year under LRS. That ceiling applies across all purposes, including investments, travel, and gifts. For most retail investors, this limit is more than enough.
Here is what the tax on remittance looks like. The government collects TCS (Tax Collected at Source) at 20% on investment remittances above ₹7 lakh per financial year. This may seem steep, but TCS is not an additional tax. It is an advance payment that appears in your Form 26AS. You claim it back fully when filing your income tax return.
Understanding taxes on your US ETF gains
Capital gains tax on U.S. ETFs follows clear rules after the 2024 budget overhaul.
Hold your ETF for more than 24 months, and you pay long-term capital gains tax at a flat 12.5% with no indexation benefit. Sell before 24 months, and short-term gains get taxed at your regular income tax slab rate. This is simpler than the old system, which charged a 20% indexation rate on foreign assets held for more than 36 months.
U.S. dividends face a 25% withholding tax at source under the India-US Double Taxation Avoidance Agreement. You can claim credit for this amount against your Indian tax liability by filing Form 67 before your ITR. This prevents you from paying tax twice on the same income. The treaty also ensures you do not pay capital gains tax in the U.S. at all. Only India taxes your profits from the sale of U.S. ETFs.
Five myths that stop Indian investors
Myth 1: You need lakhs to start. Reality: $1 is enough. Fractional shares make any amount viable.
Myth 2: The process is complicated. Reality: Sign up, complete KYC, fund your account, and buy. The onboarding process typically takes about 15 minutes on most apps.
Myth 3: U.S. markets are not safe for Indians. Reality: The SEC, FINRA, and SIPC protect your investments up to $500,000 per brokerage account. U.S. investor protection standards rank among the strongest globally.
Myth 4: Taxes make it not worth the effort. Reality: At 12.5% long-term tax and full TCS refunds, the tax structure is straightforward and competitive. Platforms generate tax reports automatically.
Myth 5: You need a U.S. bank account. Reality: You invest directly from your Indian bank. Your brokerage holds securities in your name. Withdrawals return straight to your Indian account.
Is it safe to invest in U.S. ETFs from India? Absolutely. Between SIPC insurance, SEC regulation, and the India-US tax treaty protections, Indian investors enjoy robust safeguards at every step.
Popular U.S. ETFs for Indian investors to consider
U.S. ETFs for Indian investors looking to start should focus on broad, low-cost index funds. VOO and VTI from Vanguard track the S&P 500 and the total U.S. stock market, respectively. Both charge just 0.03% annually and give you exposure to hundreds of companies in a single purchase.
For a technology tilt, QQQ tracks the Nasdaq-100 and has delivered roughly 17–18% annualised returns over the past decade, including heavyweight names such as Apple, Microsoft, NVIDIA, Amazon, and Meta. SCHD offers a more conservative option, focusing on high-quality dividend-paying companies with a yield near 3.5%. It suits investors seeking regular income alongside capital growth.
A simple starter portfolio could combine VOO for broad market exposure with QQQ for growth. Add SCHD if you want regular dividend income. Three ETFs can give you access to thousands of American companies across every primary sector. You do not need to pick individual stocks or time the market. Just invest consistently and let compounding do the work.
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
