MF Tracker: Mirae Asset NYSE FANG+ ETF FoF tops 5-year CAGR charts with 39% returns. Can the rally last?

Mirae Asset NYSE FANG+ETF FoF was the topper in the last five years with 38.69% return among all equity mutual funds including sectoral and thematic funds or international funds specifically. There were nearly 380 funds in the said time period, of which this international fund by Mirae Asset Mutual Fund outperformed the others.

Launched on May 10, 2021, the international fund is unrated by ValueResearch and Morningstar both. According to ValueResearch, there are different parameters on which the rating is given so if the fund does not qualify these parameters the rating is not given.

Based on the trailing return parameter, the fund has managed to outperform the category average across various horizons. In the last three months, the fund delivered 47.77% against 4.20% as the category average. In the last six months, the fund gave 82.41% against a category average of 15.13%. The fund posted a gain of 69.05% in the last one year compared to a category average of 24.41%.


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In the last three years, the fund delivered a gain of 65.57% against 26.75% as the category average. In the last five years, the fund gave 39.32% return against 13.54% as the category average. Since its inception, the fund has offered a CAGR of 39.05%. Note, the data for benchmark was not available for comparison with the performance of the fund.

Expert on the fund performance

Mukesh Kumawat, Executive Director, Anand Rathi Wealth Limited analysed the performance of the fund and told ETMutualFunds that the Mirae Asset NYSE FANG+ ETF FoF delivered an impressive five-year CAGR of around 38.7%, supported by its concentrated exposure to leading US technology companies benefiting from AI, cloud computing and strong earnings growth.

Kumawat further said that the underlying NYSE FANG+ Index delivered 21.96% CAGR in dollar terms, while rupee depreciation of 5.2% annually lifted the rupee return to approximately 28.3% CAGR and the additional outperformance of around 10 percentage points annually was due the premium at which the underlying ETF traded in India.

The expert further said that as of 8 October 2026, the NYSE FANG+ ETF was trading at a premium of nearly 52% to its NAV. Since the FoF's valuation reflects the ETF's market price, this premium also contributed to its reported returns and investors should understand that a portion of this outperformance reflects ETF pricing premiums that can reverse.

Based on the yearly performance since 2022, the fund has delivered a negative return in 2022 of around 33.16%. In 2023, 2024 and 2025, the fund gave 92.47%, 85.87% and 23.68% respectively.

Note, all overseas schemes of Mirae Asset Mutual Fund are currently closed for fresh lump-sum investments and new SIP registrations. Further, units of the underlying ETF may trade at a premium or discount to their NAV; investors are therefore advised to refer to the I-NAV before transacting.

Consistent outperformance or a few exceptional years?

Kumawat said the fund’s outperformance has not been consistent, with recent years contributing significantly to its five-year CAGR of 38.7% and after declining 33.2% in 2022, the fund delivered extraordinary returns of 92.5% in 2023 and 85.9% in 2024 which was largely driven by the rally in US technology stocks.

Returns moderated to 23.7% in 2025, before rising nearly 65% in 2026 so far which are partly supported by ETF pricing premiums. In fact, the fund’s three-year CAGR of 64.4%, compared with its five-year CAGR of 38.7%, clearly shows how much of the outperformance has been concentrated in recent years. Investors should therefore avoid extrapolating these exceptional returns into the future, particularly in a concentrated technology fund where sharp corrections and ETF pricing premiums can significantly influence returns, the expert further said.

According to the SID of the scheme, the NYSE FANG+ Index is an equal-dollar weighted Index designed to represent a segment of the technology and consumer discretionary sectors consisting of 10 highly-traded growth stocks of technology and tech-enabled companies such as Facebook, Apple, Amazon, Netflix, and Alphabet’s Google.

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Can the fund withstand an AI-led tech correction, and should it be a core or satellite holding?

The expert said the fund carries significant concentration and sector risk as it invests in a basket of just 10 leading US technology and internet companies and a sharp correction in AI related stocks or a decline in technology valuations could therefore impact the fund much more severely than broader indices such as the S&P 500.

“We saw this in 2022, when the fund declined over 33% and a similar correction is possible given the sharp rally in recent years. Additionally, any unwinding of ETF pricing premiums could further increase the losses for Indian investors.”

Kumawat also said that at current levels, investors should avoid taking fresh exposure to international funds. Most of these funds are trading at substantial premiums to their underlying NAV. Even if international funds are already part of an investor's portfolio, they should remain a satellite allocation of less than 5% of the overall portfolio and the core equity portfolio should be built through diversified domestic equity categories such as large cap, mid cap, small cap, flexi cap and multi cap funds, which offer diversification.

The investment style of the fund is to invest in low credit quality and short average maturity. ETMutualFunds analysed the other key ratios of the fund in a three year period. Based on the last three years, the scheme has offered a Treynor ratio of 25.17 and an alpha of 3.97. The sortino ratio of the scheme was recorded at 3.94.

The return due to net selectivity was recorded at 3.90 and return due to improper diversification was recorded at 0.03 in the last three years.

International basket

Apart from Mirae Asset NYSE FANG+ETF FoF, there are 42 other international funds who have completed five years of existence. Among these 42 funds, Mirae Asset S&P 500 Top 50 ETF FoF gave the highest return of 31.70% whereas Kotak International REIT Overseas Equity Active FOF offered the lowest return of around 2.14% in the last five years.

Recently some fund houses have stopped accepting fresh subscriptions on their international funds. As the fund houses are stopping the fresh subscription should one go for international funds now?

Kumawat said fresh subscriptions in most international mutual fund schemes still remain restricted due to the industry's overseas investment limits and therefore several international ETFs are trading at substantial premiums to their NAV.

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“Investors are therefore paying not just for the underlying international market exposure, but also for the scarcity of ETF units. Such premiums can reverse even if US markets remain stable, creating an additional risk of losses. Given these concerns, investors should avoid fresh investments in international funds for now.”

He further said that domestic markets remain easier for Indian investors to understand and track, and therefore domestic equity funds are better placed for long term wealth creation and international markets have also remained volatile in recent months and are influenced by several global factors, which can be difficult for retail investors to monitor.

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

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