US Stocks | ETFs first, stock picks later: How Indians should invest in US markets

As Indian investors look to deepen their exposure to global markets in 2026, the debate around how to invest in US equities—broadly or selectively—has taken centre stage.

According to Tarun Singh, Founder and MD of Highbrow Securities, the current environment of geopolitical uncertainty, market volatility, and a strong US equity rally calls for a measured, layered approach.

Rather than making binary decisions between exiting or aggressively chasing US stocks, he believes Indian investors should first build a stable core through low-cost US ETFs, and then selectively add high-conviction stock or sector bets to enhance returns.


This strategy, he says, balances diversification with opportunity, allowing investors to participate in long-term US growth themes like AI and innovation, while managing risk more effectively in an unpredictable global landscape. Edited Excerpts –

Q) Could a potential US military operation in Venezuela impact US financial markets, and how might this affect the portfolios of investors with exposure to US assets?
A) Such an operation could possibly cause some short-term ups and downs in US financial markets. This might happen through changes in oil prices and investors moving to safer options like the US dollar.

If you have a lot of US stocks in your portfolio, you could see a bit of selling pressure, but the overall effect should be limited because Venezuela only supplies about 1% of the world's oil.

For Indian investors with US investments, it's a good idea to keep an eye on ways to protect against energy price changes during this time.

Q) Are there specific US sectors or companies that could come under pressure amid rising geopolitical tensions?
A) The developments in Venezuela could actually help defence companies like Lockheed Martin and RTX, as people expect bigger US military spending.

For energy companies, it's a mixed bag: refiners might benefit from cheaper Venezuelan oil if it becomes available, but oil producers could face lower prices if supplies increase.

That said, US markets started 2026 on a high note, with the Dow jumping 1,500 points, which helps keep pressure off most sectors overall.

Q) As we look ahead to 2026, should investors consider adding to their existing US portfolios, or does the recent rally warrant some profit-booking?
A) In 2026, it's worth adding to US portfolios on a selective basis. Analysts see the S&P 500 reaching around 7,600, driven by ongoing growth in AI and strong company earnings, even after the recent market gains.

You might want to take some profits in overvalued areas, but the solid basics and supportive policies make it a good time to build positions if you're careful. For investors in India, pulling out completely isn’t necessarily ideal.

Rather, they should consider buying specific high-potential US growth stocks strategically to strengthen their portfolio.

Q) In 2026, would investors be better positioned through US ETFs, or does selective exposure to individual US stocks or sectors make more sense?
A) For 2026, with all the uncertainties, broad US ETFs like VOO (which tracks the S&P 500) or ones focused on specific sectors are a smart, low-cost way to spread out your investments. They have very low fees under 0.1% and a proven history.

On the other hand, picking individual stocks or sectors, like Nvidia in AI, can give better returns if you have clear ideas and are willing to manage them actively.

For Indian professionals who understand global markets, a good approach is to use ETFs as your main foundation and add a few targeted stock picks to boost performance.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)