International ETFs

International ETFs are exchange-traded funds that invest in stocks, bonds, or other assets of companies listed outside India — providing Indian investors with diversified exposure to foreign markets and economies within the mutual fund regulatory framework. In India, international ETFs are available as Fund of Funds (FoFs) that invest in overseas ETFs — including US market ETFs (S&P 500, Nasdaq 100, Dow Jones), developed market ETFs (Europe, Japan, UK), emerging market ETFs (China, Brazil, Southeast Asia), and thematic international ETFs (global technology, healthcare, clean energy). Prominent Indian AMCs offering international ETF FoFs include Mirae Asset (Nasdaq 100, NYSE FANG+), DSP (US Flexible Equity), Motilal Oswal (S&P 500 Nasdaq 100), and Franklin Templeton (US Opportunities). Following SEBI's 2022 freeze on new overseas investments by Indian mutual funds (due to industry-wide utilisation of the $7 billion SEBI industry cap for overseas investment), several international fund FoFs were temporarily closed for fresh subscriptions — though select funds were allowed to resume subsequently. For Indian investors, international ETFs serve three purposes: geographical diversification away from India's single-country risk, exposure to global technology and healthcare companies not listed in India, and natural USD hedge against rupee depreciation. Capital gains on international ETFs are taxed as debt fund gains (at applicable income tax slab rates) for units purchased after April 1, 2023.