Best International ETFs for Indian Investors in 2025: A Detailed Analysis

Exchange-Traded Funds (ETFs) are rapidly becoming a popular choice for Indian investors seeking exposure to global markets. With international investments becoming more accessible, ETFs offer a seamless way to tap into the growth of economies such as China, Japan, the UK, and beyond. This guide explores the best international ETFs to consider in 2025, how Indian investors can participate in them, brokers that support these investments, and country-specific ETF forecasts for the coming year.

What Are International ETFs?

International ETFs are funds traded on stock exchanges that hold investments in foreign markets. These funds enable Indian investors to gain exposure to global equities, bonds, and commodities. Key benefits include:

• Global Growth Opportunities: Access to high-performing international markets.
• Risk Diversification: Spread investments across multiple economies and industries.
• Convenience: ETFs trade like regular stocks, simplifying transactions.

Top International ETFs to Watch in 2025

Here are some of the best ETFs for Indian investors to consider:

1. Edelweiss Greater China Equity Offshore Fund
   This ETF invests in companies from China, Hong Kong, and Taiwan, capitalizing on the region’s innovation and economic growth.
2. Nippon India Japan Equity Fund
   A fund focused on Japanese equities, offering exposure to a market renowned for advancements in robotics and automation.
3. iShares MSCI India ETF
   Although centered on Indian markets, this ETF is accessible globally, enabling international investors to participate in India’s economic momentum.
4. Vanguard FTSE All-World ex-US Small-Cap ETF (VSS)
   Specializes in small-cap stocks from markets outside the U.S., providing diversification and exposure to emerging opportunities.
5. iShares MSCI Emerging Markets ETF
   Covers large and mid-cap companies in emerging economies, including India and China, which are expected to drive global growth.

Steps to Invest in International ETFs from India

1. Choose a Reputable Stock Broker:
   Opt for brokers that offer access to international markets and facilitate ETF investments. Some Indian brokers have partnerships with foreign platforms.
2. Open an Account:
   Complete the Know Your Customer (KYC) process to open a trading and demat account.
3. Fund Your Account:
   Transfer funds under the Liberalized Remittance Scheme (LRS), which permits remittances of up to $250,000 per year.
4. Select an ETF:
   Research ETFs that align with your investment goals and risk profile.
5. Execute Your Trade:
   Use your broker’s platform to place buy orders during market hours.
6. Track Your Investments:
   Regularly review ETF performance and stay updated on global market trends.

Best Brokers for International ETF Investments

Here are some of the top brokers in India facilitating international ETF investments:

• Dhan: Offers a wide range of international ETFs, promoting portfolio diversification.
• Motilal Oswal: Provides access to ETFs focused on specific global regions and themes.
• ET Money: Features a variety of international ETFs, making global investment straightforward.

Country-Specific ETF Predictions for 2025

1. China:
   ETFs in China’s technology and consumer sectors are expected to thrive, fueled by domestic consumption and innovation.
2. Japan:
   With advancements in robotics and automation, Japanese ETFs are poised for growth.
3. United Kingdom:
   ETFs targeting the UK’s financial and healthcare sectors could see gains, supported by economic recovery initiatives.
4. United States:
   U.S. ETFs in technology and renewable energy sectors are projected to maintain their growth momentum.

Why Invest in International ETFs?

• Global Diversification: International ETFs provide exposure to a variety of economies and industries, reducing dependency on a single market.
• Accessible Growth Opportunities: These funds make it easier to invest in high-potential sectors worldwide, from AI to clean energy.
• Liquidity and Flexibility: ETFs are traded like stocks, offering investors liquidity and flexible entry points.

Capitalizing on Global Growth in 2025

International ETFs present Indian investors with an efficient way to diversify portfolios and access global growth stories. By choosing the right ETFs, leveraging supportive stock brokers, and staying informed about market trends, investors can optimize their strategies for 2025.

For further insights, read our article on US Stock Market Analysis and Top Picks for 2025: A Strategic Investment Guide.