The Best Nifty 50 ETFs To Buy Right Now

The Nifty 50 gives investors exposure to Indian companies. The fund benefits from India’s high GDP growth, which helps its corporations deliver high revenue and net income growth. India also benefits from a large population with a higher fertility rate than most parts of the world.

Investors can buy ETFs that give them exposure to the Nifty 50. This approach also makes it easier for people to benefit from Indian stocks without having to pick individual companies and monitor them. These are some of the top Nifty 50 ETFs to consider. 

iShares India 50 ETF (INDY)

The iShares India 50 ETF (NASDAQ:INDY) gives investors exposure to the 50 largest Indian companies. It has a 0.89% expense ratio and has delivered close to 70% in gains over the past five years. It also has an annualized 7.3% return over the past decade.

More than one-third of the fund’s assets are allocated in the financial industry, with tech, consumer discretionary, and energy each making up a little more than 10% of the fund’s total holdings. The fund has $717 million in assets and has been around since November 18, 2009. 

First Trust India Nifty 50 Equal Weight ETF (NFTY)

The First Trust India Nifty 50 Equal Weight ETF (NASDAQ:NFTY) is optimal for investors who want portfolio diversification. This fund offers equal exposure to all 50 holdings, and fund managers rebalance the fund’s holdings every quarter to maintain equal distribution. NFTY has a 0.81% expense ratio and $212 million in total assets.

The ETF has produced an annualized 17.3% return over the past five years. Financial stocks currently make up 23.8% of the fund’s total assets. That sector is the largest one, which isn’t a surprise for a Nifty 50 ETF. However, the quarterly rebalancing gives other sectors a chance to shine. For instance, consumer cyclicals make up 18.0% of the fund’s total assets, while basic materials consist of 12.4% of its total assets. Those are the only sectors that individually make up more than 10% of its total assets.

The ETF has seven fund managers, and five of them have been working at the fund ever since it was launched on February 14, 2012. The other two joined in 2016 and 2020, respectively.

SBI Nifty 50 ETF (SETFNIF50)

The SBI Nifty 50 ETF (NSE:SETFNIF50) is the final Nifty 50 ETF on this list. It’s delivered a compelling 144% return over the past five years, which has outpaced the S&P 500 and Nasdaq Composite. The fund places a heavy emphasis on financial stocks, with tech, consumer cyclical, and energy as the next three sectors. 

The growth-oriented fund has a relatively low volatility compared to the broad stock market and a generous 0.04% expense ratio. While it’s already expected that all of the Nifty 50 ETF’s holdings are large-cap stocks, it’s worth noting that 60% of its holdings are in large-cap growth stocks, with an additional 37% of its assets in stocks that combine value and growth. Only 3% of its holdings are in purely value stocks.

The Nifty 50 has delivered compelling returns while allowing investors to diversify their portfolios outside of U.S. stocks. The S&P 500 and Nasdaq Composite are two of the most established benchmarks, but it is worth exploring additional options. India has a robust economy that is growing at a faster rate than most global economies. The SBI Nifty 50 ETF is one of the many ways to get exposure to India’s economy.

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