Investing international ETF foreign equity

International ETFs in India

From WebNotes, a public knowledge base. Last updated 18 May 2026. Reading time ~6 min.

International ETFs in India are exchange-traded funds listed on Indian stock exchanges that provide exposure to foreign equity markets through Indian-listed ETF structures. The category enables Indian retail investors to access foreign equity (Nasdaq 100, S&P 500, Hang Seng, FTSE 100, etc.) through standard demat-trading accounts without using the Liberalised Remittance Scheme (LRS) route.

For Indian retail investors, international ETFs offer:

Exchange-traded foreign exposure: Standard demat-account access.
Lower TER than international FoFs: Typically 0.50-1.00 per cent vs 1.50-2.50 per cent for FoFs.
Intraday liquidity: Buy and sell during Indian market hours.
Simpler than LRS direct investing: No foreign-banking requirements.

Major international ETFs in India

Nasdaq 100 focus

Motilal Oswal Nasdaq 100 ETF: The largest Indian Nasdaq 100 ETF.
Mirae Asset NYSE FANG+ ETF: Top FANG+ stocks.
Aditya Birla Sun Life Nasdaq 100 ETF.

S&P 500 focus

Motilal Oswal S&P 500 ETF.
HDFC S&P 500 ETF.

Hang Seng / Chinese exposure

Nippon India Hang Seng BeES.
Mirae Asset Hang Seng TECH ETF.

Operational considerations

Overseas investment cap

Subject to the overseas investment cap :

Industry-wide USD 7 billion.
Per-AMC USD 1 billion.

Cap exhaustion has affected international ETF subscription availability.

Indian market hours

International ETFs trade only during Indian market hours (9:15 am to 3:30 pm IST). The underlying foreign markets may be closed or open differently:

US markets: Trade overnight (Indian time), so US ETF prices reflect overnight movements.
Hong Kong / Japan: Partially overlap with Indian hours.
Europe: Partially overlap with afternoon Indian hours.

This creates intraday valuation gaps that market makers arbitrate.

Demat-mode required

International ETFs require demat-account holding at CDSL or NSDL .

Tax treatment

International ETFs are treated as debt-oriented for tax under the post-2023 framework :

All gains taxed at slab rate as short-term regardless of holding period.
No long-term capital gains preference.
No indexation benefit (post-2023 purchases).

Comparison with international FoFs and LRS

Dimension	International ETF	International FoF	LRS Direct US Investing
Holding	Demat	Folio or demat	Foreign broker account
TER	0.50-1.00%	1.50-2.50% (double-TER)	None (brokerage only)
Trading	Indian exchange	NAV-based	US exchange
Tax in India	Slab rate (post-2023)	Slab rate (post-2023)	Slab rate (post-2023)
Setup complexity	Low	Low	High

Role in portfolios

International ETFs serve:

Tactical international exposure: For sophisticated investors comfortable with exchange trading.
Cost-efficient foreign equity: Lower TER than FoFs.
Sectoral plays: Through Nasdaq 100 (tech) or Hang Seng TECH (China tech).

External references

References

SEBI master circular on overseas investments.
AMFI ETF data on international ETFs.
Finance Act 2023 debt taxation amendment.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 18 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.