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Global Tech ETFs: Your Key to AI, Cloud, Green Energy
24 Feb
Summary
- International ETFs offer access to global tech megatrends like AI and green energy.
- Nasdaq 100 and Hang Seng Tech ETFs diversify portfolios beyond Indian markets.
- International ETFs provide currency hedging and long-term capital gains tax benefits.
Indian investors are increasingly looking beyond domestic markets to capture global growth in megatrends like AI, cloud computing, and green energy. International ETFs provide a strategic way to diversify portfolios across different currencies and economies, complementing a strong domestic foundation. These ETFs offer exposure to sectors like advanced semiconductor manufacturing and global SaaS that are not well-represented in Indian indices.
International ETFs also serve as a natural currency hedge. Holdings in foreign currency can increase in Rupee terms if the Indian Rupee depreciates, preserving global purchasing power. The Motilal Oswal Nasdaq 100 ETF focuses on 100 large U.S. tech companies, including AI leaders, while the Mirae Asset Hang Seng Tech ETF provides access to 30 major tech firms in Hong Kong, representing the Asian consumer market.
Regulatory guidelines, such as SEBI's 2026 rules, have made international ETFs more cost-effective, with expense ratios capped around 0.90%. Investors should monitor tracking error and iNAV for better value. As of 2026, Indian tax rules offer a simplified treatment for international ETFs: a 24-month holding period qualifies for Long-Term Capital Gains (LTCG) taxed at a flat 12.5%. Short-Term Capital Gains (STCG) are taxed at applicable income tax slab rates.
