Introduction: Best Performing ETFs in India Over the Last 10 Years

• Summary
• ETFs provide exposure to an index, commodity, sector, theme or international market through units traded on a stock exchange.
• ETF returns are mainly driven by the performance of the underlying index or asset, but expenses and tracking differences can affect the returns actually earned.
• A 10-year performance period can help assess how an ETF or its underlying benchmark performed across different market cycles, although past returns do not guarantee future performance.

Understanding ETFs in India (Basics for Beginners)

An Exchange Traded Fund (ETF) is an investment fund that is listed and traded on a stock exchange like a share. An ETF generally tracks an index, commodity, bond, or a bunch of securities. For example, an ETF tracking the Nifty 50 aims to deliver returns broadly in line with the Nifty 50 Index, before costs and tracking differences. 

Unlike actively managed mutual funds, ETFs are generally passively managed. The fund manager mainly seeks to replicate the underlying index or asset rather than selecting investments with the objective of outperforming the benchmark. 

Best Performing ETFs Last 10 Years in India

The best-performing ETFs over the last 10 years in India as of 10 September 2026.

Fund Name	Category	AUM in ₹ crores	TER	10yrs Return
Motilal Oswal Nasdaq 100 ETF (MOFN100)	International	13,290.52	0.6	24.03
LIC MF Gold Exchange Traded Fund	Gold	1,369.83	0.45	16.24
Invesco India Gold ETF	Gold	722.72	0.5	16.01
ABSL Gold ETF	Gold	2,692.21	0.44	15.97
UTI Gold ETF	Gold	4,090.68	0.59	15.95
HDFC Gold ETF	Gold	22,285.4	0.59	15.94
Kotak Gold ETF	Gold	13,733.41	0.52	15.91
Quantum Gold ETF	Gold	710.93	0.55	15.84
SBI Gold ETF	Gold	24,424.67	.65	15.83
ICICI Pru Gold ETF	Gold	25,821.8	0.49	15.8

Top Performing ETF Categories in India (10-Year Perspective)

A 10-year period gives investors a better view of how an ETF category has performed across different market cycles. However, ETF returns should be compared using the underlying index or asset, rather than treating all ETFs as one category.  

1. Broad Market Equity

Broad-market equity ETFs provide exposure to a large group of Indian companies through indices such as the Nifty 50 and Nifty 500. The Nifty 500 represents the top 500 companies by full market capitalisation and covers about 92.04% of the free-float market capitalisation of stocks listed on NSE as of March 30, 2026. This makes ETFs tracking broad indices a way to participate in the overall Indian equity market rather than relying on a single sector. 

2. Global Tech

Global technology ETFs provide exposure to technology companies outside India, depending on the index tracked by the ETF. This category can give Indian investors access to international technology businesses and reduce dependence on the domestic equity market. However, global-tech ETFs carry additional factors such as international market movements and currency fluctuations. The category has also seen increased availability in India’s ETF market, with NSE listing ETFs covering international indices alongside domestic equity, debt and gold ETFs. 

3. Gold (Commodities)

Gold ETFs track gold as their underlying asset and provide an exchange-traded way to gain exposure to the metal. AMFI states that the price of Gold ETF units moves in line with the price of gold, subject to factors such as expenses and tracking differences. Gold has also been an important alternative asset over long periods because its performance does not necessarily move in the same direction as equities. However, gold ETFs should be assessed against domestic gold prices, rather than against equity benchmarks. Their returns can also be affected by expenses and tracking differences. 

4. Thematic/PSU

Thematic and PSU ETFs focus on a narrower investment universe than broad-market ETFs. PSU-focused ETFs, for example, can hold shares of public-sector companies and may track indices designed specifically around government-owned enterprises. These ETFs can deliver strong returns during periods when the underlying theme or sector performs well, but they also carry higher concentration risk than broad-market ETFs. Therefore, a strong 10-year return from a thematic or PSU index does not necessarily mean the category will outperform in the future. 

Performance Drivers & Risk Factors

ETF performance depends mainly on the performance of the underlying index or asset. However, the return earned by an investor can differ from the benchmark because of expenses, tracking error, trading costs and liquidity. NSE’s recent ETF guidance highlights the underlying index, iNAV, total expense ratio, tracking error and liquidity as key factors to evaluate before investing. 

• Underlying Index or Asset: The biggest driver is the performance of what the ETF tracks. A Nifty 50 ETF will largely follow the Nifty 50, while a gold ETF will be influenced by domestic gold prices. 
• Tracking Error: An ETF may not exactly match its benchmark. Lower tracking error indicates that the ETF is replicating its benchmark more closely. NSE identifies expenses, cash holdings, transaction costs, index changes and corporate actions as some factors that can increase tracking error. 
• Liquidity: Trading volume and the availability of buyers and sellers can affect how efficiently an ETF can be bought or sold. NSE specifically identifies liquidity as an important consideration when selecting an ETF. 

The risk factors associated with ETF performance are given below.

• Market Risk: An ETF does not eliminate the risk of its underlying investment. If the index or asset falls, the ETF’s value can also decline. 
• Tracking Risk: Differences between the ETF’s return and its benchmark can arise from expenses, cash balances, transaction costs, index rebalancing and other operational factors. 
• Liquidity Risk: ETFs with limited trading activity may have wider bid-ask spreads or may be harder to trade at the desired price. NSE notes that lower liquidity can increase transaction costs and affect execution. 

Investment Strategies Using ETFs (Beginner to Advanced)

ETFs can be used for different investment approaches depending on an investor’s time horizon, risk tolerance and investment objective. Since ETFs trade on stock exchanges, investors can use them for both long-term investing and shorter-term strategies. However, the strategy should match the type of ETF being used. 

1. Beginner Strategies

• Dollar-Cost Averaging: In this case, the investor makes investments in fixed amounts periodically, rather than determining the proper moment to enter the market. In this regard, with ETFs, it involves making periodic investments through a trading account. It might assist in buying stocks at various price levels. 
• Buy and Hold: Investors buy units of a broad-market ETF and hold them for the long term. For example, a Nifty 50 ETF can provide exposure to a basket of large Indian companies through a single investment. The strategy focuses on the long-term performance of the underlying index rather than frequent trading. 

2. Intermediate Strategies

• Core-Satellite Approach: The investor can consider using a broad-based exchange-traded fund as the core position and supplementing that with satellite positions of either sector-specific, thematic, or foreign ETFs. While such an approach is possible, one should remember that satellite investments come with their own risks. 
• Asset Allocation: Investors can combine ETFs covering different asset classes, such as equity, gold and debt. The allocation can be based on the investor’s risk profile and financial goals. Investors can also periodically rebalance the portfolio when the allocation moves significantly away from the intended mix. 

3. Advanced Strategies

• Sector Rotation: Investors shift their ETF allocation between sectors based on their assessment of economic and market conditions. For example, an investor may increase exposure to banking ETFs when expecting stronger financial-sector performance and reduce it when the outlook changes. This strategy requires regular monitoring and carries the risk of making incorrect timing decisions. 
• Swing Trading: Investors seek to profit from short-term price movements by buying an ETF at a potentially favourable level and selling after a targeted price move. Liquidity, bid-ask spreads, trading costs and market volatility become particularly important for this strategy. It also carries a higher risk of losses than a long-term buy-and-hold approach. 

Common Mistakes ETF Investors Make

ETF investing can be simple, but investors may make mistakes when they focus only on past returns or the expense ratio. The following are the common mistakes made by ETF investors. 

• Choosing an ETF Only by Past Returns: A fund that performed well in the past may not continue to outperform. Investors should also examine the underlying index, tracking difference, costs and risk. 
• Ignoring Tracking Error: An ETF may not deliver exactly the same return as its benchmark. Investors should check the tracking error or tracking difference to understand how closely the ETF follows its underlying index. 
• Overtrading: Frequent buying and selling can increase brokerage and other transaction costs. It can also make a long-term investment strategy more dependent on short-term market movements. 
• Taking Excessive Sector Exposure: Sectoral and thematic ETFs can provide focused exposure but may carry higher concentration risk. Using too many such ETFs can reduce portfolio diversification. 

Final Thoughts

ETFs can offer a convenient way to gain exposure to an index, commodity, sector or international market through a single exchange-traded investment. The 10-year data in this article shows that international technology and gold ETFs have delivered strong long-term returns among the selected funds, although past performance does not guarantee future results. 

The right ETF ultimately depends on the investor’s financial goals, investment horizon and ability to tolerate market fluctuations. Reviewing these factors before investing can help investors use ETFs as part of a more suitable long-term portfolio. 

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