Diversify portfolios with international ETFs to ride global equities

In today's connected world, concentrating on only your domestic market might feel like losing on global opportunities. Indian investors can spread risk and profit from worldwide growth opportunities through international mutual funds, which are managed by professional fund managers who keep a close eye on global markets and make wise investment choices on behalf of investors. However, as we are exploring ETFs, no active management is needed.

Following are the top international ETFs that performing well and fetching good returns for their investors:

Data as of July 11, 2024

Mirae Asset NYSE FANG and ETF

Mirae Asset NYSE FANG and ETF, managed by Mirae Asset Mutual Fund, is an open-ended scheme launched on May 1, 2021. This ETF tracks the NYSE FANG+ TRI benchmark with a total expense ratio (TER) of 0.66% as of June 30, 2024. The minimum investment required is ₹5,000, with no minimum top-up amount.

As of June 30, 2024, the fund's total assets stood at ₹2,351.6 crore, and it has no exit load. The net asset value (NAV) as of July 10, 2024, is 101.24. Since its inception, the fund has achieved a compound annual growth rate (CAGR) of 25.81%.

The sector allocation for Mirae Asset NYSE FANG and ETF is diverse, with significant investments in services (39.73%), capital goods (20.08%), technology (19.17%), automobiles (10.94%), and consumer discretionary (10.07%).

Notably, the fund's portfolio includes top holdings in major companies such as Alphabet Inc Class A (11.78%), Tesla Inc (10.94%), Broadcom Corporation (10.46%), Apple Inc (10.07%), and Amazon.com Inc (10.03%).

Over the past five years, the fund has experienced several down-market performances.

These figures highlight the volatility the fund has encountered, reflecting broader market trends.

Motilal Oswal Nasdaq 100 ETF (MOFN100)

Motilal Oswal Nasdaq 100 ETF (MOFN100), previously known as Motilal Oswal MOSt Shares NASDAQ-100 ETF, is an equity ETF launched by Motilal Oswal Mutual Fund on March 9, 2011. This open-ended scheme, benchmarked against the NIFTY 50 TRI, has a Total Expense Ratio (TER) of 0.58% as of June 30, 2024. The fund has total assets worth ₹7,988.2 crore and a turnover rate of 23%, with a minimum investment and top-up requirement of ₹500 each.

As of July 10, 2024, the Net Asset Value (NAV) of the fund stood at ₹168.58. Since its inception, the fund has delivered a Compound Annual Growth Rate (CAGR) of 23.29%, outperforming its benchmark's 14.33%.

The sector allocation of the Motilal Oswal Nasdaq 100 ETF is entirely in the NASDAQ 100 index, which consists of top-performing technology and innovation-driven companies. The top five holdings of the fund include Microsoft Corp (8.63%), Apple Inc (8.39%), Nvidia Corp Com (7.9%), Amazon Com Inc (5.23%), and Broadcom Inc (4.99%).

These companies represent the largest portions of the fund's investments, highlighting its focus on leading technology giants that drive the NASDAQ 100 index.

In terms of performance during down markets over the last five years, the Motilal Oswal Nasdaq 100 ETF has experienced notable declines during certain months.

The above table indicates periods of market volatility affecting the fund's performance.

Other International ETFs

Data as of July 11, 2024

Conclusion

International ETFs provide Indian investors valuable opportunities for global diversification and substantial returns. They also help in reducing risk through exposure to international markets.