Top Performing ETFs to Invest in This Year: Diversify Your Portfolio

Exchange-traded funds (ETFs) are a type of investment fund that can be traded on stock exchanges, much like individual stocks. These funds typically hold a diversified portfolio of assets, which may include stocks, bonds, commodities like gold, or a combination of these. ETFs are designed to track the performance of a specific index, sector, commodity, or asset class. This feature makes them an attractive option for investors seeking to mirror the performance of a particular market or segment without having to buy individual securities.

Key Features of ETFs

One of the defining characteristics of ETFs is their structure, which allows investors to buy and sell shares throughout the trading day at market prices. This intraday trading capability provides significant liquidity and flexibility, enabling investors to enter and exit positions with ease. Additionally, ETFs are known for their low expense ratios compared to traditional mutual funds, making them a cost-effective investment option. This combination of liquidity, flexibility, and cost efficiency makes ETFs a popular choice among both individual and institutional investors.

Overview of the Best ETFs in India

Here is a comprehensive overview of the 15 best ETFs to invest in India, detailing their expense ratios, assets under management (AUM), market capitalization, risk levels, and trend charts.

1.  Nippon India ETF Nifty 50 BeES

The Nippon India ETF Nifty 50 BeES is one of the best ETFs to invest in 2024 and among the top choices for investors looking to gain broad market exposure. It tracks the Nifty 50 index, which includes the top 50 companies listed on the National Stock Exchange (NSE). This ETF provides investors with access to a diversified portfolio of blue-chip companies across various sectors of the Indian economy.

• Fund Symbol: NIFTYBEES
• NAV: Rs 241.63
• Expense Ratio: 0.04%
• AUM: Rs 21,580 crore
• Market Cap: Rs 22,606.36 crore
• Volume: 20.49 lakhs
• Risk: High risk
• Minimum Lump Sum Investment: Rs 10,000

Returns:

• 1Y Return: 12.1%
• 3Y Return: 44.25%
• 5Y Return: 101.17%

2.  Nippon India ETF PSU Bank BeES

Nippon India ETF PSU Bank BeES tracks the Nifty PSU Bank Index, providing exposure to stocks of public sector banks in India. This ETF can be appealing for those looking to diversify within the banking sector. However, potential investors should consider their individual investment goals and risk tolerance.

• Fund Symbol: PSUBNKBEES
• NAV: Rs 76.34
• Expense Ratio: 0.49%
• AUM: Rs 2,561 crore
• Market Cap: Rs 2,640.14 crore
• Volume: 42.97 lakhs
• Risk: Very high risk
• Minimum Lump Sum Investment: Rs 10,000

Returns:

• 1Y Return: 86.17%
• 3Y Return: 210.69%
• 5Y Return: 120.81%

3.   ICICI Prudential Mutual Fund – BHARAT 22 ETF

The BHARAT 22 ETF is notably the best ETF to Invest in 2024 for its diversified portfolio of blue-chip stocks from key sectors of the Indian economy. It offers exposure to well-established companies with strong growth potential, combined with the benefits of diversification and liquidity typical of ETFs.

• Fund Symbol: ICICIB22
• NAV: Rs 96.10
• Expense Ratio: 0.07%
• AUM: Rs 16,624 crore
• Market Cap: Rs 16,519.94 crore
• Volume: 7.58 lakhs
• Risk: Very high risk
• Minimum Lump Sum Investment: Rs 5,000

Returns:

• 1Y Return: 67.72%
• 3Y Return: 167.61%
• 5Y Return: 163.31%

4.   Mirae Asset NYSE FANG+ ETF

The Mirae Asset NYSE FANG+ ETF is another of the ETFs to Invest in 2024. It aims to replicate the NYSE® FANG+™ Index, which includes leading technology and tech-enabled firms such as Facebook, Apple, Amazon, Netflix, and Google. This ETF provides an opportunity for investors to benefit from the growth potential of major global tech giants.

• Fund Symbol: MAFANG
• NAV: Rs 83.55
• Expense Ratio: 0.66%
• AUM: Rs 2,046 crore
• Market Cap: Rs 2,140.42 crore
• Volume: 3.51 lakhs
• Risk: Very high risk
• Minimum Lump Sum Investment: Rs 5,000

Returns:

• 1Y Return: 78.87%
• 3Y Return: 83.87%
• 5Y Return: NA

5.  UTI S&P BSE Sensex ETF

The UTI S&P BSE Sensex ETF mirrors the performance of the S&P BSE Sensex Index, which comprises India’s top 30 listed companies. This ETF is a convenient way for investors to gain exposure to the blue-chip segment of the Indian equity market.

• Fund Symbol: UTISENSETF
• NAV: Rs 784
• Expense Ratio: 0.05%
• AUM: Rs 36,897 crore
• Market Cap: Rs 37,759 crore
• Volume: 303
• Risk: Very high risk
• Minimum Lump Sum Investment: Rs 5,000

Returns:

• 1Y Return: 25.59%
• 3Y Return: 50.93%
• 5Y Return: 96.76%

6.  Nippon India ETF Gold BeES

The Nippon India ETF Gold BeES (GOLDBEES) offers investors exposure to the price movements of gold without needing to own the physical metal. This ETF is backed by physical gold, making it a convenient and cost-effective way to invest in gold bullion.

• Fund Symbol: GOLDBEES
• NAV: Rs 55.54
• Expense Ratio: 0.79%
• AUM: Rs 8,929 crore
• Market Cap: Rs 9,676.18 crore
• Volume: 51.90 lakhs
• Risk: High risk
• Minimum Lump Sum Investment: Rs 10,000

Returns:

• 1Y Return: 12.38%
• 3Y Return: 44.61%
• 5Y Return: 101.67%

7.   Nippon India Etf Nifty Bank Bees

The Nippon India ETF Nifty Bank Bees (BANKBEES) tracks the Bank Nifty index, comprising the most liquid and large-cap banking stocks listed on the NSE. This ETF provides exposure to India’s crucial banking sector, allowing investors to benefit from the performance of leading banks.

• Fund Symbol: BANKBEES
• NAV: Rs 471.90
• Expense Ratio: 0.19%
• AUM: Rs 6,120 crore
• Market Cap: Rs 6,074.77 crore
• Volume: 5.91 lakhs
• Risk: Very high risk
• Minimum Lump Sum Investment: Rs 10,000

Returns:

• 1Y Return: 17.94%
• 3Y Return: 30.97%
• 5Y Return: 56.87%

8.  HDFC Nifty50 Value 20 ETF

The HDFC Nifty50 Value 20 ETF (HDFCVALUE) focuses on value investing by targeting stocks that are trading at a discount to their intrinsic value. This strategy aims to identify undervalued stocks with potential for long-term capital appreciation.

• Fund Symbol: HDFCVALUE
• NAV: Rs 123.29
• Expense Ratio: 0.15%
• AUM: Rs 23 crore
• Market Cap: Rs 25.62 crore
• Volume: 0.06 lakhs
• Risk: Very high risk
• Minimum Lump Sum Investment: Rs 5,000

Returns:

• 1Y Return: 34.58%
• 3Y Return: 47.00%
• 5Y Return: 48.08%

9.   Invesco India Gold ETF

The Invesco India Gold ETF is designed to track the price of gold in India. This ETF provides a way for investors to gain exposure to gold’s performance without the need to physically own or store the metal, offering both liquidity and potential capital appreciation.

• Fund Symbol: IVZINGOLD
• NAV: Rs 5,852.88
• Expense Ratio: 0.55%
• AUM: Rs 97 crore
• Market Cap: Rs 104.40 crore
• Volume: 107
• Risk: High risk
• Minimum Lump Sum Investment: Rs 5,000

Returns:

• 1Y Return: 12.37%
• 3Y Return: 43.74%
• 5Y Return: 104.88%

10 .  Nippon India Silver ETF

The Nippon India Silver ETF (SILVERBEES) is backed by physical silver, allowing investors to gain exposure to the price movements of silver bullion. This ETF provides a convenient way to invest in silver without needing to manage physical storage.

• Fund Symbol: SILVERBEES
• NAV: Rs 72.56
• Expense Ratio: 0.51%
• AUM: Rs 1,518 crore
• Market Cap: Rs 1,621.04 crore
• Volume: 74.96 lakhs
• Risk: Very high risk
• Minimum Lump Sum Investment: Rs 1,000

Returns:

• 1Y Return: 9.53%
• 3Y Return: N/A
• 5Y Return: N/A

In conclusion, ETFs offer investors a versatile and cost-effective way to gain diversified exposure to various asset classes, sectors, and markets. The 15 best ETFs in India highlighted above provide a range of options catering to different investment goals and risk appetites. Whether seeking broad market exposure, sector-specific investments, or commodity-based ETFs, investors can find suitable options to enhance their portfolios.