2 Best India ETFs for Canadian Investors (June 2026)
The best India ETFs in Canada include ZID.TO (~0.61% MER) and XID.TO (~0.80%). These ETFs provide exposure to Indian equities, offering strong growth potential driven by economic expansion, but with higher volatility, currency risk, and emerging market uncertainties.
India ETFs are designed for Canadian investors seeking exposure to one of the fastest-growing emerging economies in the world. ETFs like ZID.TO and XID.TO provide access to Indian equities, including sectors such as financials, technology, and consumer goods.
The key advantage of India ETFs is their strong long-term growth potential driven by a young population and expanding economy. However, these ETFs come with higher volatility, currency risk, and market concentration.
In this guide, we break down the best India ETFs for Canadian investors, comparing growth potential, fees, and risk so you can decide how they fit into your TFSA, RRSP, or international portfolio.
At a Glance: Quick Comparison
Side-by-side snapshot of fees, yield, and returns. Data updates daily.
| ETF | MER | AUM | Yield | YTD | 1Y |
|---|---|---|---|---|---|
Top ZID.TO BMO MSCI India Selection Equity Index ETF | — | $174M | 0.82% | -13.48% | -16.46% |
XID.TO iShares India Index ETF | — | $133M | 16.44% | -8.41% | -11.53% |
What Is an ETF?
An India ETF in Canada is an exchange-traded fund that invests in Indian equities, providing exposure to companies listed on Indian stock exchanges. These ETFs allow Canadian investors to access India’s rapidly growing economy without directly purchasing foreign securities.
For example, ZID.TO (~0.61% MER) tracks Indian equities with a focus on large- and mid-cap companies, while XID.TO (~0.80% MER) provides similar exposure with a slightly different structure and sector weighting. INDA (U.S.-listed) is a widely used ETF tracking the MSCI India Index.
India ETFs are commonly used in TFSAs and RRSPs as a growth-oriented allocation. Investors should consider currency exposure (INR), market concentration, and emerging market risks when investing.
The 2 Best ETFs: Ranked & Reviewed
Detailed breakdown of each pick with live data.
BMO MSCI India Selection Equity Index ETF
$43.34
-13.48% YTD
Returns
YTD
-13.48%
1Y
-16.46%
3Y
+3.84%
5Y
+2.91%
iShares India Index ETF
$44.66
-8.41% YTD
NA
Returns
YTD
-8.41%
1Y
-11.53%
3Y
+3.82%
5Y
+4.36%
Pros & Cons
Pros
- High growth potential from one of the fastest-growing global economies
- Exposure to expanding middle class and consumer-driven sectors
- Diversification into emerging markets beyond China
- Access to sectors like financials, IT, and consumer goods
Cons
- Higher volatility compared to developed market ETFs
- Currency fluctuations (INR/CAD) can impact returns
- Market concentration in financials and large-cap companies
- Political and regulatory risks in emerging markets
Compare These ETFs Head-to-Head
Drill into a side-by-side breakdown of performance, AUM, and yield.
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Frequently Asked Questions
What is the best India ETF in Canada?
ZID.TO is one of the most popular India ETFs in Canada due to its exposure to large- and mid-cap Indian companies. XID.TO offers a similar strategy, while INDA provides a U.S.-listed alternative tracking the MSCI India Index.
Are India ETFs risky?
Yes, India ETFs are considered higher risk because they invest in emerging markets. They are subject to volatility, currency fluctuations, and political or regulatory changes, but they also offer strong long-term growth potential.
Should I invest in India ETFs for long-term growth?
India ETFs can be a strong long-term growth addition to a diversified portfolio due to the country’s economic expansion and demographics. However, they are typically used as a smaller allocation due to their higher risk profile.