India exchange-traded funds (ETFs) offer a way for investors to geographically diversify their portfolios by owning a range of companies in one of the world's largest emerging markets. India ETFs track the performance of a basket of equities trading on the National Stock Exchange of India (NSE). This allows investors to benefit from India's economy, which expanded by an estimated 6.1% in 2019. Some of India's largest companies include India Oil Corp. (IOC), Bharat Petrol Corp. (BPCL), and Tata Motors Ltd. (TATAMOTORS). While returns in emerging-market economies can be quite high, the associated risks also tend to be higher than developed-market economies.

The India ETF universe is comprised of about 9 distinct ETFs, excluding inverse and leveraged ETFs. The best-performing India ETF for Q1 2020, based on performance over the past year, is the iShares India 50 ETF (INDY). We examine the top 3 best India ETFs below. All numbers in this story are as of February 11, 2020.

iShares India 50 ETF (INDY)

  • Performance over 1-Year: 11.0%
  • Expense Ratio: 0.94%
  • Annual Dividend Yield: 0.59%
  • 3-Month Average Daily Volume: 80,621
  • Assets Under Management: $750.7 million
  • Inception Date: November 18, 2009
  • Issuing Company: iShares

INDY is a mega-cap ETF that follows a blended strategy that invests in value and growth stocks. The fund's top three holdings include HDFC Bank Ltd. (HDFCBANK), a banking and financial services company, Reliance Industries Ltd. (RIL), a multinational conglomerate with businesses in a range of industries, and Housing Development Finance Corporation Ltd. (HDFC), a financial services company and major provider of housing finance. 

iShares MSCI India Small-Cap ETF (SMIN)

  • Performance over 1-Year: 10.3%
  • Expense Ratio: 0.76%
  • Annual Dividend Yield: 1.62%
  • 3-Month Average Daily Volume: 43,705
  • Assets Under Management: $306.0 million
  • Inception Date: February 8, 2012
  • Issuing Company: iShares

SMIN is considered a small-cap ETF that follows a blended strategy of investing in both value and growth stocks. The fund's top three holdings include AU Small Finance Bank Ltd. (AUBANK), a commercial bank, Apollo Hospitals Enterprise Ltd. (APHS), a hospital chain, and Jubilant Foodworks Ltd. (JUBI), a food service company.

iShares MSCI India ETF (INDA)

  • Performance over 1-Year: 9.0%
  • Expense Ratio: 0.69%
  • Annual Dividend Yield: 0.99%
  • 3-Month Average Daily Volume: 3,574,572
  • Assets Under Management: $5,591.1 million
  • Inception Date: February 2, 2012
  • Issuing Company: iShares

INDA is a large-cap ETF that follows a blended strategy, investing in both value and growth stocks listed on the NSE. The fund's top three holdings include Reliance Industries Ltd. (RIL), Housing Development Finance Corporation Ltd. (HDFC), and Infosys Ltd. (INFO), an India-based multinational IT consulting company.