How do I choose which international ETF to invest in?
Published 18 September 2026
I am 36years old from Bangalore, so far primarily have invested in Indian Mutual funds exploring investing some lump sum and a SIP in international markets.
Looking for better $ returns for the next 3-5years.
Which international ETFs should I invest in ?
Looking for better $ returns for the next 3-5years.
Which international ETFs should I invest in ?
In simple terms:
don't try to predict which country will win in the next 3–5 years. Start with a global core, gradually build 20–30% international exposure within overall equity over 5–10 years, and spread exposure across global, developed markets, emerging markets, US core , technology and gold, reducing dependence on any one market.
The suggested allocation is intentionally well diversified rather than heavily tilted towards the US, especially when US valuations are relatively high.
For the international allocation, I’d keep it simple: World Index 35%, US Equal-Weighted 15%, Developed Markets ex-US 10%, Emerging Markets 25%, US Technology 10% and Gold 5%.
Since most of your equity is already in India, this approach keeps the global portfolio well diversified rather than overly dependent on the US, especially when US valuations are relatively high. Build it gradually through SIPs and occasional lump-sum investments rather than trying to time the market.
For tax, foreign ETFs generally become long-term after 24 months for an Indian resident, with LTCG generally taxed at 12.5% without indexation.
don't try to predict which country will win in the next 3–5 years. Start with a global core, gradually build 20–30% international exposure within overall equity over 5–10 years, and spread exposure across global, developed markets, emerging markets, US core , technology and gold, reducing dependence on any one market.
The suggested allocation is intentionally well diversified rather than heavily tilted towards the US, especially when US valuations are relatively high.
For the international allocation, I’d keep it simple: World Index 35%, US Equal-Weighted 15%, Developed Markets ex-US 10%, Emerging Markets 25%, US Technology 10% and Gold 5%.
Since most of your equity is already in India, this approach keeps the global portfolio well diversified rather than overly dependent on the US, especially when US valuations are relatively high. Build it gradually through SIPs and occasional lump-sum investments rather than trying to time the market.
For tax, foreign ETFs generally become long-term after 24 months for an Indian resident, with LTCG generally taxed at 12.5% without indexation.