Global ETFs vs individual stocks: How should Indian investors build overseas exposure?

An Indian investor interested in global markets does not necessarily have to research individual companies or decide which foreign stock to buy next. Exchange-traded funds (ETFs) offer another route, allowing investors to gain exposure to a group of companies through a single investment.

For those considering international investing, the choice comes down to how they want to participate in overseas markets. Individual stocks allow investors to choose specific businesses, while a broad-market ETF offers exposure to multiple companies without requiring them to select each one.

The International Investing Masterclass by The Economic Times will explore the role of ETFs in global investing and what Indian investors should consider before choosing their approach.

What a broad-market ETF offers

An ETF allows investors to buy into a fund that holds a collection of securities. A broad-market ETF can provide exposure to companies across different industries or countries, depending on the index it follows. Instead of buying shares in each company individually, investors can access several holdings through one fund.

Also Read: International investing for Indians: Mutual funds, GIFT City or direct stocks?

Some ETFs cover a wide range of global companies, while others focus on a particular country, industry or market. Investors should look at what a fund holds and how much exposure it provides to different companies before investing.

ETFs also come with costs and market risks. Their value can fall when the underlying stocks decline, and a fund concentrated in a particular market or sector may offer less diversification than an investor expects.

When individual stocks make sense

Buying foreign stocks directly gives investors the freedom to choose the companies they want to own. Those who follow particular businesses and understand their financial performance may prefer to build a portfolio around their own research.

The approach also requires more involvement. Investors need to keep track of individual companies and consider how changes in their performance affect the portfolio. Brokerage charges, currency conversion and applicable tax rules are other factors to understand when investing overseas from India.

Also Read: If you only own Indian stocks, what are you missing?

For someone who wants exposure to global markets without following individual companies closely, an ETF may be easier to manage. Investors who prefer making their own company-level decisions may find direct stock selection more suitable. Both approaches carry risks, and neither guarantees returns.

Finding the right fit

The choice depends on what investors want from their overseas investments and how much time they can devote to managing them. A broad-market ETF can provide a starting point for those seeking exposure to global equities, while individual stocks offer greater control over specific investments. Some investors may choose a combination of both.

These decisions will be explored by Neil Borate, Co-Founder and Editor-in-Chief of The Fynprint, at the International Investing Masterclass on 31 October 2026. Borate brings more than a decade of experience in global markets and has previously served as Personal Finance Editor at Mint and Value Research. His session will examine ETFs and the practical considerations involved in building international exposure.

Register for FREE now!