Top 10 US ETFs every Indian investor should consider in 2026
Indian investors sent record amounts overseas in 2025 under the Liberalised Remittance Scheme. A growing chunk of that capital landed in US-listed exchange-traded funds. The reason is simple — ETFs offer instant diversification, ultra-low fees, and exposure to the world's deepest stock market.
If you are building a diversified ETF portfolio from India, the sheer number of US ETFs can feel overwhelming. Over 3,500 ETFs trade on American exchanges today. You do not need all of them. A handful of well-chosen funds can cover broad markets, high-growth sectors, and steady dividends in one portfolio.
This guide breaks down the best US ETFs for Indian investors in 2026. Each pick includes expense ratios, historical returns, risk profiles, and the type of investor it suits best.
why Indian investors are choosing US ETFs in 2026
The S&P 500 delivered back-to-back years of 20%-plus gains in 2023 and 2024. Even after some volatility in 2025 from tariff headlines and the DeepSeek AI shock, broad US indices sit near all-time highs. Meanwhile, the rupee's gradual slide past ₹87 per dollar adds a 3–5% annual currency tailwind on top of asset returns.
Direct US ETF investing also became more tax-efficient after the Finance Act 2024. Long-term capital gains on foreign ETFs held over 24 months now attract a flat 12.5% tax with no indexation — significantly lower than the slab-rate taxation on Indian fund-of-funds that invest overseas.
Under the RBI's LRS framework, every Indian resident can invest up to $250,000 per financial year. Platforms like Winvesta let you start with fractional shares, so you do not need thousands of dollars to begin. That accessibility makes the best US ETF for beginners India a realistic starting point for first-time global investors.
The top 10 ETF picks at a glance
Here is a quick-reference table before the deep dives.
| # | ETF | Tracks | Expense ratio | 5-yr annualised return | Best for |
|---|---|---|---|---|---|
| 1 | VOO | S&P 500 | 0.03% | ~14–15% | Core long-term holding |
| 2 | VTI | US total market | 0.03% | ~14–15% | Full-market coverage |
diversified core ETFs — the foundation of your portfolio
1. Vanguard S&P 500 ETF (VOO) VOO gives you ownership in 500 of America's largest companies for just 0.03% per year. That translates to ₹30 in fees for every ₹1 lakh invested. The fund tracks the S&P 500 and has delivered roughly 14–15% annualised returns over the past five years. It holds over $550 billion in assets, making it one of the world's most liquid ETFs. For most Indian investors, VOO is the single best starting point for US market exposure.
2. Vanguard Total Stock Market ETF (VTI) VTI goes wider than VOO by covering over 3,700 US stocks across large-cap, mid-cap, and small-cap segments. The expense ratio stays at a rock-bottom 0.03%. You get VOO's large-cap core plus roughly 3,200 additional smaller companies that can outperform during certain market cycles. If you want complete US equity exposure through one low cost US ETF, VTI is hard to beat.
3. SPDR Portfolio S&P 500 ETF (SPLG) SPLG tracks the same S&P 500 index as VOO but charges even less — just 0.02%. It is the cheapest S&P 500 ETF available anywhere. The AUM is smaller at around $50 billion, but liquidity is more than adequate for individual investors. SPLG suits anyone who wants to squeeze every last basis point of savings from their core holding.
[CONTENT IMAGE 1 PLACEMENT — place after the paragraph ending "...from their core holding."]
sector-specific ETFs — capturing tech and AI growth
4. Invesco QQQ Trust (QQQ) QQQ tracks the Nasdaq-100, which is heavily weighted toward technology, AI, and innovation leaders. Apple, Microsoft, Nvidia, Amazon, and Meta make up a significant portion of the fund. Five-year annualised returns hover around 18–20%, well ahead of the S&P 500. The 0.20% expense ratio is higher than VOO, but you pay for concentrated exposure to the companies driving AI infrastructure spending north of $300 billion in 2025 alone. If you are weighing an S&P 500 ETF India allocation versus a Nasdaq bet, QQQ adds meaningful growth tilt.
You can compare Indian-listed vs US-listed Nasdaq 100 ETFs to see why direct investing often wins on cost and tracking accuracy.
You can compare Indian-listed vs US-listed Nasdaq 100 ETFs to see why direct investing often wins on cost and tracking accuracy.
5. Vanguard Information Technology ETF (VGT) VGT casts a wider net than QQQ by holding roughly 380 tech stocks instead of 100. It includes mid-cap software, IT services, and payments firms that the Nasdaq-100 misses. The 0.10% expense ratio keeps costs moderate, while five-year annualised returns around 20–22% reflect the sector's dominance. VGT works for investors who want broad tech without concentrating everything in the Magnificent Seven.
6. iShares Semiconductor ETF (SOXX) SOXX is a pure play on the chip industry powering AI, data centres, and autonomous vehicles. Holdings include Nvidia, AMD, Broadcom, TSMC, and other fabrication giants benefiting from the global AI capex boom. Five-year annualised returns near 25–28% lead all funds on this list. The 0.35% expense ratio is the highest among the core picks, and volatility is elevated — SOXX dropped sharply during the January 2025 DeepSeek sell-off before recovering. Only suitable for investors with high risk tolerance and a multi-year horizon.
dividend and income ETFs — stability meets cash flow
7. Schwab US Dividend Equity ETF (SCHD) SCHD screens for companies with strong balance sheets and at least ten years of consecutive dividend payments. The result is a portfolio yielding around 3.5% annually — well above the S&P 500's 1.3%. The 0.06% expense ratio makes it one of the cheapest dividend ETFs anywhere. Five-year annualised returns of 10–12% trail growth-heavy funds, but SCHD offers lower drawdowns and steady quarterly income. It is a strong choice for investors nearing retirement or seeking portfolio ballast.
8. Vanguard Dividend Appreciation ETF (VIG) VIG takes a growth-oriented approach to dividends by tracking companies with 10-plus years of rising payouts. The yield is a more modest 1.8%, but holdings skew toward quality blue chips like Microsoft, JPMorgan, and UnitedHealth. Five-year returns around 12–14% split the difference between growth and value funds. VIG suits investors who want dividend reliability without sacrificing upside.
global and alternative ETFs — looking beyond US borders
9. Vanguard Total World Stock ETF (VT) VT is the ultimate one-fund solution. It holds over 9,800 stocks across the US, Europe, Japan, and emerging markets including India. The 0.07% expense ratio buys you true global diversification. Returns trail the S&P 500 because international markets lagged in recent years, but VT protects against single-country concentration risk. For Indian investors already exposed to Indian equities at home, VT adds developed-market international stocks that Indian mutual funds often underweight.
10. iShares Bitcoin Trust (IBIT) IBIT became the fastest ETF in history to cross $50 billion in assets after launching in January 2024. It holds physical Bitcoin in a regulated wrapper, removing the need for crypto wallets and private keys. The 0.25% expense ratio is reasonable for Bitcoin exposure, though volatility remains extreme. Treat this as a small satellite allocation — perhaps 2–5% of your total portfolio. Indian investors should note that crypto regulation in India remains evolving, so stay updated on SEBI and RBI guidelines.
expense ratio comparison — every basis point counts
When you invest long-term, small fee differences compound into large savings. Here is how the top 10 rank by cost.
| Rank | ETF | Expense ratio | Annual fee on ₹10 lakh |
|---|---|---|---|
| No results. | |||
Over a 20-year holding period, the difference between SPLG's 0.02% and SOXX's 0.35% adds up to lakhs in saved fees. If two ETFs track similar indices, always pick the cheaper option.
how to choose the right ETF based on your goals
Your ideal ETF mix depends on your investment horizon, risk appetite, and income needs. Here is a simple framework.
Long-term wealth building (10+ years): Start with VOO or VTI as 60–70% of your US allocation. Add QQQ or VGT at 20–30% for growth. This blend captures broad market returns with a tech kicker.
Income and stability: Pair SCHD and VIG for reliable dividends. Both charge just 0.06% and hold quality companies. Allocate 40–50% of your US portfolio here if you prioritise cash flow.
Global diversification: Use VT as a single-fund solution or pair VOO with an international ETF. VT simplifies rebalancing since it auto-adjusts country weights.
High-growth satellite bets: Reserve 5–15% for SOXX or IBIT if you believe in the AI hardware cycle or Bitcoin's long-term trajectory. Never let satellite positions dominate your portfolio.
Before you invest, make sure to understand the tax implications for Indian investors in US markets.
Before you invest, make sure to understand the tax implications for Indian investors in US markets. The 25% US dividend withholding tax (with W-8BEN) and India's 12.5% LTCG rate both affect your net returns.
The top performing US ETF 2026 will depend on which sectors lead, but history favours diversified core holdings over concentrated bets. Build your portfolio around broad-market funds, add sector tilts that match your conviction, and keep costs low. That approach has worked for decades — and 2026 is no different.
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
Table of Contents
Indian investors sent record amounts overseas in 2025 under the Liberalised Remittance Scheme. A growing chunk of that capital landed in US-listed exchange-traded funds. The reason is simple — ETFs offer instant diversification, ultra-low fees, and exposure to the world's deepest stock market.
If you are building a diversified ETF portfolio from India, the sheer number of US ETFs can feel overwhelming. Over 3,500 ETFs trade on American exchanges today. You do not need all of them. A handful of well-chosen funds can cover broad markets, high-growth sectors, and steady dividends in one portfolio.
This guide breaks down the best US ETFs for Indian investors in 2026. Each pick includes expense ratios, historical returns, risk profiles, and the type of investor it suits best.
why Indian investors are choosing US ETFs in 2026
The S&P 500 delivered back-to-back years of 20%-plus gains in 2023 and 2024. Even after some volatility in 2025 from tariff headlines and the DeepSeek AI shock, broad US indices sit near all-time highs. Meanwhile, the rupee's gradual slide past ₹87 per dollar adds a 3–5% annual currency tailwind on top of asset returns.
Direct US ETF investing also became more tax-efficient after the Finance Act 2024. Long-term capital gains on foreign ETFs held over 24 months now attract a flat 12.5% tax with no indexation — significantly lower than the slab-rate taxation on Indian fund-of-funds that invest overseas.
Under the RBI's LRS framework, every Indian resident can invest up to $250,000 per financial year. Platforms like Winvesta let you start with fractional shares, so you do not need thousands of dollars to begin. That accessibility makes the best US ETF for beginners India a realistic starting point for first-time global investors.
The top 10 ETF picks at a glance
Here is a quick-reference table before the deep dives.
| # | ETF | Tracks | Expense ratio | 5-yr annualised return | Best for |
|---|---|---|---|---|---|
| 1 | VOO | S&P 500 | 0.03% | ~14–15% | Core long-term holding |
| 2 | VTI | US total market | 0.03% | ~14–15% | Full-market coverage |
diversified core ETFs — the foundation of your portfolio
1. Vanguard S&P 500 ETF (VOO) VOO gives you ownership in 500 of America's largest companies for just 0.03% per year. That translates to ₹30 in fees for every ₹1 lakh invested. The fund tracks the S&P 500 and has delivered roughly 14–15% annualised returns over the past five years. It holds over $550 billion in assets, making it one of the world's most liquid ETFs. For most Indian investors, VOO is the single best starting point for US market exposure.
2. Vanguard Total Stock Market ETF (VTI) VTI goes wider than VOO by covering over 3,700 US stocks across large-cap, mid-cap, and small-cap segments. The expense ratio stays at a rock-bottom 0.03%. You get VOO's large-cap core plus roughly 3,200 additional smaller companies that can outperform during certain market cycles. If you want complete US equity exposure through one low cost US ETF, VTI is hard to beat.
3. SPDR Portfolio S&P 500 ETF (SPLG) SPLG tracks the same S&P 500 index as VOO but charges even less — just 0.02%. It is the cheapest S&P 500 ETF available anywhere. The AUM is smaller at around $50 billion, but liquidity is more than adequate for individual investors. SPLG suits anyone who wants to squeeze every last basis point of savings from their core holding.
[CONTENT IMAGE 1 PLACEMENT — place after the paragraph ending "...from their core holding."]
sector-specific ETFs — capturing tech and AI growth
4. Invesco QQQ Trust (QQQ) QQQ tracks the Nasdaq-100, which is heavily weighted toward technology, AI, and innovation leaders. Apple, Microsoft, Nvidia, Amazon, and Meta make up a significant portion of the fund. Five-year annualised returns hover around 18–20%, well ahead of the S&P 500. The 0.20% expense ratio is higher than VOO, but you pay for concentrated exposure to the companies driving AI infrastructure spending north of $300 billion in 2025 alone. If you are weighing an S&P 500 ETF India allocation versus a Nasdaq bet, QQQ adds meaningful growth tilt.
You can compare Indian-listed vs US-listed Nasdaq 100 ETFs to see why direct investing often wins on cost and tracking accuracy.
You can compare Indian-listed vs US-listed Nasdaq 100 ETFs to see why direct investing often wins on cost and tracking accuracy.
5. Vanguard Information Technology ETF (VGT) VGT casts a wider net than QQQ by holding roughly 380 tech stocks instead of 100. It includes mid-cap software, IT services, and payments firms that the Nasdaq-100 misses. The 0.10% expense ratio keeps costs moderate, while five-year annualised returns around 20–22% reflect the sector's dominance. VGT works for investors who want broad tech without concentrating everything in the Magnificent Seven.
6. iShares Semiconductor ETF (SOXX) SOXX is a pure play on the chip industry powering AI, data centres, and autonomous vehicles. Holdings include Nvidia, AMD, Broadcom, TSMC, and other fabrication giants benefiting from the global AI capex boom. Five-year annualised returns near 25–28% lead all funds on this list. The 0.35% expense ratio is the highest among the core picks, and volatility is elevated — SOXX dropped sharply during the January 2025 DeepSeek sell-off before recovering. Only suitable for investors with high risk tolerance and a multi-year horizon.
dividend and income ETFs — stability meets cash flow
7. Schwab US Dividend Equity ETF (SCHD) SCHD screens for companies with strong balance sheets and at least ten years of consecutive dividend payments. The result is a portfolio yielding around 3.5% annually — well above the S&P 500's 1.3%. The 0.06% expense ratio makes it one of the cheapest dividend ETFs anywhere. Five-year annualised returns of 10–12% trail growth-heavy funds, but SCHD offers lower drawdowns and steady quarterly income. It is a strong choice for investors nearing retirement or seeking portfolio ballast.
8. Vanguard Dividend Appreciation ETF (VIG) VIG takes a growth-oriented approach to dividends by tracking companies with 10-plus years of rising payouts. The yield is a more modest 1.8%, but holdings skew toward quality blue chips like Microsoft, JPMorgan, and UnitedHealth. Five-year returns around 12–14% split the difference between growth and value funds. VIG suits investors who want dividend reliability without sacrificing upside.
global and alternative ETFs — looking beyond US borders
9. Vanguard Total World Stock ETF (VT) VT is the ultimate one-fund solution. It holds over 9,800 stocks across the US, Europe, Japan, and emerging markets including India. The 0.07% expense ratio buys you true global diversification. Returns trail the S&P 500 because international markets lagged in recent years, but VT protects against single-country concentration risk. For Indian investors already exposed to Indian equities at home, VT adds developed-market international stocks that Indian mutual funds often underweight.
10. iShares Bitcoin Trust (IBIT) IBIT became the fastest ETF in history to cross $50 billion in assets after launching in January 2024. It holds physical Bitcoin in a regulated wrapper, removing the need for crypto wallets and private keys. The 0.25% expense ratio is reasonable for Bitcoin exposure, though volatility remains extreme. Treat this as a small satellite allocation — perhaps 2–5% of your total portfolio. Indian investors should note that crypto regulation in India remains evolving, so stay updated on SEBI and RBI guidelines.
expense ratio comparison — every basis point counts
When you invest long-term, small fee differences compound into large savings. Here is how the top 10 rank by cost.
| Rank | ETF | Expense ratio | Annual fee on ₹10 lakh |
|---|---|---|---|
| No results. | |||
Over a 20-year holding period, the difference between SPLG's 0.02% and SOXX's 0.35% adds up to lakhs in saved fees. If two ETFs track similar indices, always pick the cheaper option.
how to choose the right ETF based on your goals
Your ideal ETF mix depends on your investment horizon, risk appetite, and income needs. Here is a simple framework.
Long-term wealth building (10+ years): Start with VOO or VTI as 60–70% of your US allocation. Add QQQ or VGT at 20–30% for growth. This blend captures broad market returns with a tech kicker.
Income and stability: Pair SCHD and VIG for reliable dividends. Both charge just 0.06% and hold quality companies. Allocate 40–50% of your US portfolio here if you prioritise cash flow.
Global diversification: Use VT as a single-fund solution or pair VOO with an international ETF. VT simplifies rebalancing since it auto-adjusts country weights.
High-growth satellite bets: Reserve 5–15% for SOXX or IBIT if you believe in the AI hardware cycle or Bitcoin's long-term trajectory. Never let satellite positions dominate your portfolio.
Before you invest, make sure to understand the tax implications for Indian investors in US markets.
Before you invest, make sure to understand the tax implications for Indian investors in US markets. The 25% US dividend withholding tax (with W-8BEN) and India's 12.5% LTCG rate both affect your net returns.
The top performing US ETF 2026 will depend on which sectors lead, but history favours diversified core holdings over concentrated bets. Build your portfolio around broad-market funds, add sector tilts that match your conviction, and keep costs low. That approach has worked for decades — and 2026 is no different.
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
