If you’re looking to diversify your investment portfolio, one of the smartest ways is through the best global ETFs for diversification. Global ETFs (Exchange-Traded Funds) allow you to invest in markets across different countries and sectors, reducing the risk of being overexposed to just one region like India or the US.
In this blog, we will cover everything you need to know about the best global ETFs for diversification, how they work, why they’re important, and which ETFs are top picks in 2025.
Why Global Diversification Matters
Investing globally helps you spread risk. If one economy slows down, another might be booming. For example, when the US market is down, European or Asian markets may be up. The best global ETFs for diversification help balance this fluctuation and protect your returns.
What Are Global ETFs?
Global ETFs are funds that hold stocks, bonds, or other assets from companies across multiple countries. These ETFs trade like regular stocks on exchanges and can be bought and sold any time during market hours.
Some ETFs focus on developed markets, while others include emerging markets. A well-chosen global ETF gives you access to companies from the US, UK, Japan, Germany, China, India, and more.
Morningstar – Global ETF Insights
Benefits of Investing in Global ETFs
1. Broader Exposure
You’re not putting all your eggs in one basket. Investing across countries helps reduce country-specific risks.
2. Hedge Against Currency Risk
If the Indian Rupee weakens, having investments in USD, Euro, or Yen can balance your losses.
3. Access to Fast-Growing Economies
Some countries grow faster than others. Global ETFs let you ride these growth waves.
4. Simplicity
No need to open separate brokerage accounts in different countries. You can buy global ETFs using platforms like Zerodha, Groww, or INDMoney.
The Best Global ETFs for Diversification in 2025
Here are some top-performing and popular global ETFs to consider:
1. Vanguard Total World Stock ETF (VT)
-
Tracks global equity markets including the US and international stocks.
-
Over 9,000 stocks in one ETF.
-
Ideal for long-term global diversification.
2. iShares MSCI ACWI ETF (ACWI)
-
Covers large and mid-cap stocks from 23 developed and 27 emerging markets.
-
One of the most diversified ETFs globally.
3. SPDR MSCI World ETF (SPY)
-
Focuses on developed markets.
-
Includes large companies like Apple, Microsoft, Nestle, and Toyota.
4. iShares Core MSCI Emerging Markets ETF (IEMG)
-
Provides access to high-growth countries like India, China, Brazil, and South Korea.
-
Excellent for investors seeking growth with higher risk tolerance.
5. Motilal Oswal Nasdaq 100 ETF (India-based)
-
Indian investors can invest in top US tech companies.
-
Available through Indian brokers and exchanges.
These are some of the best global ETFs for diversification that have proven track records, high liquidity, and wide exposure.
How to Invest in Global ETFs from India
You can invest in these ETFs easily using the following platforms:
-
INDMoney (zero commission, simple interface)
-
Groww or Zerodha (via international investing section)
-
Upstox Global Investing (partnered with US brokers)
-
ICICI Direct Global (trusted full-service broker)
You need to complete KYC and fund your account via LRS (Liberalized Remittance Scheme), which allows you to send up to $250,000 abroad per financial year.
Things to Keep in Mind Before Investing
✅ Currency Risk
Returns can vary depending on exchange rate fluctuations.
✅ Tax Implications
Dividend income from global ETFs is taxed differently than Indian ETFs. Be aware of double taxation treaties.
✅ Fund Expense Ratio
Choose ETFs with low expense ratios to get more from your returns.
Best Strategy for Global Diversification
Use a mix of:
-
Broad-market global ETFs (like VT, ACWI)
-
Sector-specific global ETFs (like tech, healthcare)
-
Emerging market ETFs (like IEMG)
Don’t invest everything at once. Use SIP (Systematic Investment Plan) approach to average the cost.
The world is your market. By investing in the best global ETFs for diversification, you can lower risks and unlock the potential of different economies. With simple platforms available in India and a variety of ETFs to choose from, global investing has never been easier.
Start small, stay consistent, and build your wealth with smart diversification.