While exchange traded funds has not been performing well in the last few years, there are two ETF’s which has beaten the equity mutual funds and outperformed in the last 2 years. In this article, I would discuss about the Best ETF’s which invested outside India and has provided excellent returns in the last 2 years.
Best Exchange Traded Funds (ETF's) in India which outperformed
- Motilal Most Shares NASDAQ 100 ETF
- GS Hang Seng BeES
Also read: What are exchange traded funds and how do they work?
1) Motilal Most Shares NASDAQ 100 ETF
This is from the Motilal Oswal Mutual fund group which invests in International and Global commodities. This ETF has yielded 32% annualized returns in the last 2 years. The average in the category has yielded only 2% annualized returns, hence comparing to other peers, it has outperformed in terms of returns.
Where does this scheme invest? The scheme invests in companies of NASDAQ-100 Index, subject to tracking error. Since US economy has been booming for the last 2 years, NASDAQ-100 companies have shown good growth. It does not mean that the growth story may continue in future. But investing in such NASDAQ-100 companies has helped this mutual fund scheme to get higher returns comparing to other global mutual funds which invests in non US countries.
To whom this ETF is suitable: This ETF scheme is suitable for those who want to en-cash the growth story of US economy by investing in such ETF's in India. This does not mean that such NASDAQ listed companies would continue to perform well in future too.
2) GS Hang Seng BeES ETF
This ETF is from the Goldman Sachs group which invests in Hang Seng index companies in the same proportion of index. This ETF has yielded 17% annualized returns in the last 2 years. The average in the category has yielded only 2% annualized returns, hence comparing to other peers, it has outperformed in terms of returns.
Where does this scheme invest? This scheme invests in Hang Seng Index (Hong Kong) in the same proportion. This directly reflects Hong Kong growth story. Investing in Hong Kong index companies has helped this mutual fund scheme to get higher returns comparing to other global mutual funds which invests in other countries.
To whom this ETF is suitable? This ETF scheme is suitable for those who want to en-cash the growth story of specific country like Hong Kong by investing in India through this scheme. This does not mean that such Hong Kong companies would continue to perform well in future too.
Also read: Should you invest in Global/International mutual funds?
Global ETF/mutual funds are risky?
The above ETF’s investment objective is to invest in specific country Index stocks. Means the performance of the companies in those specific countries would have direct impact on the performance of these ETF’s. US economy and Hong Kong economy have shown good improvement in the last few years. After the recession in 2007, such economies are showing good growth story. However, such growth may or may not be seen in future. What if the growth story stops in such countries? What happens if there is one more recession or downtrend in such economies? Hence investing in such ETF’s should be done by keeping these things in mind.
Readers, what is your view about these global mutual funds / ETF’s. Do you think that such investments would add value to your portfolio now?
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Best Exchange Traded Funds (ETF's) which outperformed
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What are the expense ratios of these ETFs?
Rajesh, Motilal NASDAQ 100 is 1% and GS Hansen is 1.03%
I would like to buy physical gold coins…could you suggest where and in which bank I can get for a good price…thanks Bindu
Bindu, As per my knowledge all most all banks offer same price as they sell on market price.