Mumbai Investment：US listed ETFs offer global market exposure to Indian investors for diversifying across different sectors

By Ashish Kashyap

Global economies are at an interesting juncture driven by rapid technological innovations. AI, robotics, VR, and technology are transforming industries and reshaping them. We are witnessing the dawn of a new era where these technologies are redefining the way businesses operate, and in the process, unlocking opportunities for wealth creation.

Historically, technological inflection points such as these have led to the birth of entire industries and dominant market players. We have witnessed this globally with companies such as Meta, Nvidia, and TeslaMumbai Investment. Today, Indian investors have a chance to capitalize on these breakthroughs unfolding on the global stage.

Diversification is a critical strategy of . Besides exposure to Indian markets, investing in U.S. markets enables Indian investors to participate in the growth of global tech giants and innovative industries such as AI, semiconductors, and .

U.S. listed ETFs can provide exposure to a variety of global markets, offering diversification across different economies and sectors that are not available in . Additionally, Indian investors can also benefit from favorable currency exchange rates.

India presents strong growth opportunities as an emerging market, but exposure to developed economies like the U.S. can help protect against volatility in the Indian market.

The U.S. Federal Reserve’s decision to cut rates by 50 basis points signals an effort to boost economic growth. Historically, lower interest rates encourage more spending by consumers and businesses, leading to increased market activity.

Over the last decade, the S&P 500 has given an annual return of 13% versus Nifty’s 12%. Additionally, gains from the dollar appreciation further add to the returns of the investors.Udabur Stock

While past performance does not guarantee future results, a diversified strategy with global exposure can help reduce risk. The U.S. easing cycle is expected to continue, offering significant growth potential in the near term.

The upcoming U.S. elections and its outcome is another major event to be considered. These events can result in shifts in fiscal policies, regulatory changes, and international trade agreements, all of which influence market dynamics. Historically, periods bring increased market volatility but can also present unique investment opportunities.

Every day, Indians engage with products and services from U.S. based companies, whether through Apple or Windows devices, connecting on social networks like Instagram and WhatsApp, or streaming content on platforms such as Netflix and Prime. These companies have vast cash reserves and diversified revenue streamsPune Investment. Investing in these global giants offers an opportunity to participate in their growth and wealth creation.

The U.S. leads in emerging technologies such as AI, tech and EVs. Nvidia’s dominance in AI chips and Tesla’s advancements in electric vehicles are expected to accelerate with improved capital access, enabling further innovation.

The U.S. market also plays a crucial role in the global shift towards green energyLucknow Wealth Management. With companies like Tesla, Rivian, and NextEra Energy leading the way, investors can take advantage of the transition to cleaner technologies.

Indian investors can diversify in U.S. markets via the Liberalized Remittance Scheme (LRS) and invest directly in U.S. stocks and ETFs.

The indirect investment route involves Indian mutual funds and ETFs offering global exposure, particularly to the U.S. market.

In total, it is estimated that more than 4 million Indian investors have exposure to U.S. markets through these routes.

Having a diversified portfolio across Indian and US markets enables investors to diversify and hence manage their risk. The differing economic cycles in the U.S. and India allow investors to capitalize on near-term opportunities while protecting themselves from local market volatility.

(Author is Founder, INDmoney)

Hyderabad Investment