Archive · 19 Aug 2025
US ETFs vs. Mutual Funds: Navigating International Investments
If you want to invest your money in other countries, you have two main choices: US ETFs or international mutual funds.
ETFs are like directly buying a piece of the US market, which can be cheaper if you're okay with doing it yourself.
Mutual funds do the work for you, but they cost a bit more because they invest in US markets.
Also, remember that if the value of the Indian rupee goes down compared to other currencies, your investments could look better.
The value of the rupee affects how much your investment gains are worth, with depreciation helping and appreciation hurting.
US ETFs and international mutual funds are options for diversifying investments.
US ETFs directly track indices like S&P 500 or Nasdaq.
International mutual funds invest in US ETFs or US-based funds, with additional expenses.
Rupee depreciation boosts returns, while appreciation erodes them.
Many international mutual funds are not accepting new inflows due to RBI guidelines.
- Who
- Rajani Tandale, investors
- What
- Investment strategies for international diversification.
- When
- August 2025
- Where
- US market
- Why
- To diversify investments internationally
US ETFs
International Mutual Funds
Cost Efficiency
US ETFs
More cost-efficient.
International Mutual Funds
Higher fee due to the additional layer of expenses.
Complexity
US ETFs
Requires DIY process and handling forex transfers
International Mutual Funds
Simplicity and convenience
- Primary Investment Options
- US ETFs or International Mutual Funds
- Currency Impact
- Rupee depreciation boosts returns
- Fund with best returns
- DSP World Gold FoF
Sources
MFs foreign assets drop 5.6 pc to USD 8.3 bn in FY25: RBI
Weak start to 2025 prompts $10.1 billion FII exits; earnings revival eyed - Telegraph India
Foreign liabilities of MFs rose 19.9% to $30.5 bn in 2024-25: RBI survey
Rating upgrade may not translate into FPI inflows