ETFs, Not Stocks, Are Driving India’s Global Bets

There was a time when 'investing globally' for Indian investors meant owning a handful of familiar names — Apple, Google, Tesla — preferably discussed at dinner parties with impressive dedication. Today, that approach is quietly being replaced by something far less flashy, but far more telling: ETFs.

India’s global investing story is no longer just about picking winners abroad. It’s about buying the broader global market itself.

According to the How India Invests Globally – 2025 report by Vested Finance, total overseas investments by Indians have soared from roughly $40 crore to more than $160 crore in recent years — a four-fold jump that reflects widening ambition and diversification beyond domestic markets.

The appeal of ETFs is almost boring, but that’s precisely the point.

Instead of tracking earnings across time zones or worrying about company-specific blow-ups, ETFs offer instant exposure to entire markets, sectors, or global themes.

Roughly 61% of global investors now hold both stocks and ETFs, while over 80% of investors have some ETF allocation in their portfolios.

Sectoral ETFs, like spanning technology, artificial intelligence, or semiconductors, allow investors to back a global trend without having to decide which single company will dominate it.

Another striking insight from the report is that the Indian global investor base is young and excited about the market, with 46% under the age of 35. Many of them start with modest sums — 38% begin with less than $500.

While stocks still dominate — 68% of investors favour direct single-company positions — the rise of ETFs is unmistakable.

About 27% of ETF allocations go to index ETFs, such as those tracking the S&P 500, while smaller portions are invested in emerging market or thematic ETFs.

Part of ETFs’ popularity comes down to comfort. Many global ETFs are accessed through domestic mutual fund platforms, which feel familiar to Indian investors, who are used to SIPs, fact sheets, and fund disclosures.

Direct stock investing overseas, by contrast, still comes with friction — overseas brokerage accounts, compliance under the Liberalised Remittance Scheme, currency conversions, and tax reporting complexities. ETFs neatly sidestep much of that.

The report points out that regulatory clarity and operational ease have played a major role in shaping this behaviour, especially for first-time global investors.

Broad diversification with simplicity — One ETF can give exposure to dozens or hundreds of companies, smoothing out the volatility that comes with individual stock picks.

Lower costs and real-time liquidity — ETFs usually carry lower expense ratios than actively managed funds and trade like stocks throughout market hours.

Steadier portfolios — As the rupee fluctuates and global markets evolve, many investors see ETFs as a way to build portfolios that can weather timing and currency risks.

The median global portfolio size now sits at about $10,465, a sign that global investing for many Indians is becoming a deliberate, recurring activity rather than a sporadic experiment.

None of this means Indian investors have abandoned foreign stocks entirely. Direct equity bets will always attract seasoned investors willing to do the homework, and take the risk.

But for the majority, the global journey is becoming quieter, broader, and more deliberate.