Investors in the Indian equity market can reduce portfolio risk by diversifying into equity-backed investments from different geographies, such as the US stock market. However, there are some inherent risks associated with investing in global markets. These range from taxation and currency risk to understanding the US laws and regulations to meeting remittance requirements set by the RBI. So investors need to be aware of these before investing abroad.
For those who want to take exposure in the US stock market through exchange-traded funds (ETFs), there are several funds to choose from. An ETF is a low-cost mutual fund that tracks an index, allowing investors to simultaneously buy all stocks in the same proportion as the index. Below are 3 major ETFs tracking the leading stock market indices in the US.
SPY ETF – Tracks S&P 500
The State Street SPDR S&P 500 ETF Trust, also known as the SPY ETF, tracks the S&P 500 index — a collection of large-cap US companies spread across eleven main industries. It is regarded as the best indicator of large-cap US equities. The S&P 500’s top three industries are information technology, healthcare, and communication services.
As of April 30, 2026, the SPY ETF had returned 30.84% in one year, 13% in five years, and 15.10% in ten years. Its top 5 holdings by weight are NVIDIA Corporation 8.10%, Apple Inc. 7.03%, Microsoft Corporation 4.80%, Amazon.com Inc. 4.02%, and Alphabet Inc. Class A 3.51%.
Invesco QQQ Trust – Tracks Nasdaq 100
The Invesco QQQ Trust (QQQ) is an ETF that gives investors access to all 100 companies listed on the Nasdaq 100 Index through a single investment. As of March 31, 2026, the Invesco QQQ ETF had returned 23.69% in one year, 13.31% in five years, and 18.98% in ten years. QQQ’s top holdings include Apple, Microsoft, Nvidia, Amazon, Meta, and Tesla.
SPDR DIA ETF Trust – Tracks Dow 30
The State Street SPDR Dow Jones Industrial Average ETF Trust is designed to provide investment results that, before expenses, correspond generally to the price and yield performance of the Dow Jones Industrial Average.
The Dow Jones Industrial Average (DJI), commonly called the Dow 30, is a price-weighted index of 30 large-cap US stocks. What makes it unique is that it exclusively covers US-based enterprises with a strong reputation, consistent growth, and high investor interest. Unlike other indices, quantitative rules or market capitalization do not influence the Dow 30 selection process.
As of April 30, 2026, the SPDR DIA ETF had returned 23.93% in one year, 9.85% in five years, and 13.03% in ten years. The top 3 holdings of the ETF are Goldman Sachs Group Inc., 12.13%, Caterpillar Inc. 11.08%, and Microsoft Corporation 5.08%.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. ETF returns cited are historical and do not guarantee future performance. Indian investors must comply with the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) limits and applicable tax laws before investing in overseas instruments. Readers are advised to consult a SEBI-registered financial advisor before making any investment decisions.
