ETFs, or exchange-traded funds, have long been popular with new and experienced investors, and with good reason. Like a basket of securities, ETFs allow investors to experience a diverse stock market environment through a single financial channel. Simply put, ETFs are not based on a single performance point like stocks. Instead, they spread investments across dozens or hundreds of assets to reduce risk and allow users to benefit from overall market performance.

In this article, we have compiled a list of the best ETFs for investing in India 2022, especially for Indian investors. While Indian residents can invest in all international ETFs, they can use certain Indian ETFs that track the performance of a basket of shares listed on the Indian National Stock Exchange. (NSE) Exchange, Reflection.

List of top 5 ETFs for investing in India

1. Columbia India Consumer ETF (INCO)

Expense rate: 0.75%

The Columbia India Consumer ETF is considered one of the best ETFs in India due to its strong bias towards defensive consumer stocks. INCO follows the price and earnings development of the Indxx India Consumer Price Index. This Index is a market cap weighted, market cap adjusted product. The fund invests 80% of its net assets in the companies included in the specified index, with an ownership interest of up to 95%.

Recent data showing INCO's sector weighting shows that more than 72% of the fund's weight is in the consumer discretionary sector and about 27% in consumer discretionary. INCO's top 5 holdings by percentage of assets are as follows:

• Titan Co Ltd (7.91%)
• Britannia Industries Limited (7.82%)
• Made from material Dabur India Ltd Shs (7.49%)
• Godrej Consumer Products Limited (7.46%)
• Hindustan Unilever Limited (7.40%)

The fund has net assets of approximately $80 million with 1,550,000 shares outstanding. The total daily return over 3 years is 10.8%.

2. First Trust India NIFTY 50 Equal Weight ETF (NFTY)

Expense rate: 0.80%

First Trust India NIFTY 50 Equal Weight is another high-performing ETF that tracks the performance of the NIFTY 50 Equal Weight Index in India. The Index comprises the 50 largest and most liquid Indian companies listed on the National Stock Exchange of India. In addition, composite values ​​are mainly value and development categories. Please note that the fund invests at least 90% of its net assets in the specified index.

NFTY's portfolio includes securities across a range of industries including materials, consumer discretionary, energy, technology and others, with the largest exposure to the financial services sector. According to the latest data, these five holdings have the highest wealth ratios in NFTY:

• Bajaj Finserv Limited (2.57%)
• Tech Mahindra Limited (2.49%)
• Hindalco Industries Ltd. (2.33%)
• Tata Steel Limited (2.33%)
• Bajaj Finance Limited (2.32%)

The fund has approximately $46 million in assets under management and one million shares outstanding. In 3 years, the total daily income is about 12%.

3. Invesco S&P 500 Low Volatility ETF (SPLV)

Spending rate: 0.25%

The Invesco S&P 500 Low Volatility ETF is one of the best ETFs for investing in India due to its defensive and low volatility approach compared to the benchmark S&P 500 index. Monitors the results of SPLV investments   it has The S&P 500 is a low-volatility index and invests at least 90% of its assets in securities that are part of that index. This index is designed to measure the performance of 100 stocks over the past 12 months as determined by the index provider.

SPLV is a well diversified fund with holdings across different sectors. The fund's portfolio is heavily weighted in utilities, consumer protection, healthcare, financial services and industrial services. As of October 5, 2022, the fund's top 5 holdings were:

• Johnson & Johnson JNJ (1.36%)
• Gilead Sciences, Inc. GOLD (1.29%)
• PepsiCo Inc. PEP (1.25%)
• Be Bristol-Myers Squibb Company (1.21%)
• Berkshire Hathaway Inc Stock BRK.B (1.20%)

The Invesco S&P 500 Low Volatility ETF has approximately $9.77 billion in assets under management and 167 million shares outstanding. The total monthly return is about 3.5% over 3 years and about 9% over 5 years.

4. Select Consumer Staples Sector SPDR ETF (XLP).

Expense rate: 0.10%

Consumer Staples Select Sector SPDR ETF is one of the best ETFs to invest in in the current turbulent stock market climate in India. XLP is a defensive, consumer-focused ETF that tracks the performance of the Consumer Staples Select Sector Index. This undifferentiated index includes companies classified by GICS as 'Consumer Major Companies'.

XLP's portfolio is 98.7% weight in the defensive consumer sector, followed by 1.29% in healthcare. According to recent data, the top 5 XLP holdings by percentage of assets are:

• Procter & Gamble Company PG (14.48%)
• PepsiCo Inc. PEP (10.75%)
• Coca-Cola Co (10.27%)
• Costco Wholesale Corporation Price (9.98%)
• Walmart Inc. WMT (4.69%)

The fund has net assets of approximately $14.7 billion and 128 million shares outstanding. The 3-year total daily return is over 5% and the 5-year monthly return is over 7%.

5. Vanguard International Dividend Appreciation ETF (VIGI)

Expense rate: 0.15%

Vanguard International Dividend Appreciation is a large-cap overseas ETF that tracks the performance of the S&P Global Ex-US Dividend Growers Index. The index measures the investment performance of non-US companies that have consistently increased their dividends over time. It is one of the best ETFs to invest in India if you want exposure to dividend-paying and high-growth companies from different parts of the world except the US.

VIGI is a well-diversified fund that includes stocks from various sectors such as healthcare, industrials, technology, communications services, consumer discretionary and defense, among others. From a total of 315 stocks, here are the top 5 current holdings with the largest asset weights.

• Novo Nordisk Class A/SB (4.48%)
• Novartis AG (4.35%)
• Nestle SA (4.19%)
• Tencent Holdings Ltd (3.74%)
• Roche Holding AG (3.67%)

The fund has more than $3.5 trillion in assets under management. VIGI's 3-year compound monthly yield is also close to 3.37%.

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