Top 10 ETFs in India for Your 2026 Watchlist

The Indian stock market has seen a massive behavioural shift in the last couple of years. Investors are increasingly looking towards simple, cost-effective investment products.

And this is where ETFs have taken center stage.

ETFs were once niche products used predominantly by institutional players; this narrative has completely reversed.

With increasing awareness, falling expense ratios, and strong performance of key market indices such as the Nifty 50, Nifty Next 50, Nifty Midcap, PSU, and Banking indices, retail investors are increasingly considering ETFs as an investment option.

Every basis point counts in the market, and compared to actively managed funds, ETFs offer much lower fees, thus proving to be more attractive for long-term wealth generation, especially among young first-time investors.

At the same time, ETFs offer instant diversification, whereby investors may own a basket of securities simply by buying one unit on the stock exchange.

Investors today like to know exactly where their money is invested. ETFs track an index, there are no surprises, no fund-manager biases, no style drifts. In an environment where so many active funds have struggled to consistently beat their benchmarks, predictability has become a major advantage.

Commodity-based ETFs have also gained significance, especially the gold and silver ETFs. During periods of inflation, geopolitical risks, and currency fluctuations, commodities tend to be safe havens that reduce overall portfolio volatility.

They essentially offer investors exposure to a physical commodity without the hassle of storage or purity issues.

Another rapidly growing segment is international ETFs. These track global indices such as the NASDAQ, S&P 500, and other international markets.

Since Indian markets have often traded on premium valuations, global ETFs offer investors an opportunity to diversify geographically and participate in industries or technology-driven sectors which are not adequately represented in India.

The following list of ETFs represent some of the strongest performers within the Indian market. These are identified by a combination of strong historical returns, a strong 3-year rolling CAGR, low tracking error, and healthy risk-adjusted performance.

Top 10 ETFs in India

Scheme Name	Absolute (%)	CAGR (%)			Risk Ratios
	1 Year	3 Years	5 Years	10 Years	Sharpe	Sortino	SD Annualised
Axis Silver ETF	33.33	35.65	-	-	0.33	0.82	24.45
HDFC Silver ETF	33.21	34.52	-	-	0.32	0.78	25.55
DSP Silver ETF	33.13	33.43	-	-	0.34	0.85	24.1
Motilal Oswal Nasdaq 100 ETF	23.67	23.54	21.44	20.93	0.42	0.8	17.93
LIC MF Gold ETF	37.37	23.14	15.09	12.94	0.47	1.28	14.36
UTI Gold ETF	37.78	22.96	14.69	12.65	0.47	1.29	14.37
Axis Gold ETF	37.28	22.69	14.8	12.37	0.48	1.36	13.67
ICICI Pru Gold ETF	37.32	22.68	14.72	12.49	0.48	1.37	13.73
Aditya Birla SL Silver ETF	33.34	22.62	-	-	0.33	0.84	24.51
HDFC Gold ETF	37.2	22.59	14.71	12.61	0.48	1.31	13.87

Source: ACE MF

The performance of India's commodity and international ETFs has been particularly striking over the recent periods, with both gold and silver ETFs delivering strong returns amid global economic uncertainty.

Silver-focused ETFs such as Axis Silver, HDFC Silver, DSP Silver, and Aditya Birla SL Silver ETF have generated robust three-year CAGR numbers in the 22-35% range.

Although their volatility is higher reflected in annualised standard deviation levels above 24%, their Sharpe and Sortino ratios indicate that the risk-adjusted performance has been healthy.

These numbers reflect silver's cyclical surge driven by industrial demand, global supply constraints, and rising interest in precious metals as a hedge against inflation and geopolitical tensions.

Gold ETFs, meanwhile, have demonstrated strong and more stable long-term performance.

Funds such as LIC MF Gold ETF, UTI Gold ETF, Axis Gold ETF, ICICI Pru Gold ETF, and HDFC Gold ETF have delivered three-year CAGR in the 22-23% range, with consistent long-term CAGR (10-year) between 12-13%.

Their risk metrics are notably stronger, with Sharpe ratios near 0.47-0.48 and Sortino ratios above 1.28, indicating smoother return patterns and better downside protection.

Compared to silver ETFs, gold ETFs show much lower volatility with standard deviation around 14%, highlighting gold's role as a stabiliser in turbulent markets.

The Motilal Oswal Nasdaq 100 ETF also stands out with its solid 3-year returns of around 23%, along with a strong 5-year CAGR of 21.44%, capturing the continued strength of US technology and innovation-led companies.

Together, these performance trends reaffirm that ETFs across commodities and global equities offer investors a powerful mix of growth, diversification, and risk-adjusted stability.

What You Should Know

With ETFs continuing to evolve in the Indian market, their role in investor portfolios becomes more strategic than ever.

Going forward, the ETF space is expected to expand further in India with increasing liquidity, launch of more thematic indices, and awareness among investors.

With markets entering a phase where valuations in certain segments remain elevated and volatility might remain unpredictable, ETFs could offer a disciplined way to stay invested without taking concentrated bets.

As their regulatory framework becomes stronger with increasing market-maker participation, ETF efficiency in India will likely increase, making them more available and reliable.

The key takeaway is to align ETF choices with one's financial goals, investment horizon, and risk appetite instead of chasing short-term performance.

Invest wisely.

Happy investing.

#Table Note: Data as of December 03, 2025
The securities quoted are for illustration only and are not recommendatory
Past performance is not an indicator for future returns.
Returns are on rolling CAGR basis and in %. Direct Plan-Growth option.
Those depicted over 1-Yr are compounded annualised.
Risk ratios are calculated over a 3-year period assuming a risk-free rate of 6% p.a.

Disclaimer: This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy / Hold / Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Registration granted by SEBI, enlistment as IA with Exchange and certification from NISM no way guarantee performance of the intermediary or provide any assurance of returns to investors.