What is the BSE 500 ETF?

A BSE 500 ETF is an exchange-traded fund that tracks the BSE 500 Index, which includes the top 500 companies listed on the Bombay Stock Exchange. These ETFs provide passive exposure to a broad spectrum of the Indian market, spanning large, mid, and small-cap stocks.

What are the advantages of investing in BSE 500 ETFs?

BSE 500 ETFs offer broad market diversification, covering 500 of India’s largest, mid, and small-cap companies. They provide low-cost, passive exposure to a wide range of sectors, helping reduce individual stock risk. Additionally, these ETFs are liquid and trade on exchanges like regular stocks, offering flexibility.

What are the risks of investing in BSE 500 ETFs?

While BSE 500 ETFs offer diversification, they are still subject to market risk, as their performance mirrors the underlying index. Mid- and small-cap stocks in the ETF may be more volatile, and tracking errors may cause slight deviations from the index's returns. Liquidity can also be a concern in smaller stocks.

Are BSE 500 ETFs passively managed?

Yes, BSE 500 ETFs are passively managed. They aim to replicate the performance of the BSE 500 Index by investing in the same securities in the same proportion as the index. This passive management helps keep costs low compared to actively managed funds.

Are BSE 500 ETFs a good investment?

BSE 500 ETFs can be a good investment for those seeking broad exposure to the Indian stock market with a low-cost, diversified approach. They offer long-term growth potential but carry market risks, including volatility in mid- and small-cap stocks. Whether they are suitable depends on individual investment goals and risk tolerance.

How to sell BSE 500 ETFs?

BSE 500 ETFs can be sold on the stock exchange via your demat account. You need to place a sell order during trading hours, and the trade settles through the standard settlement cycle.

List of Best BSE 500 ETFs in India

The BSE 500 Index covers 500 of India's top companies, offering broad market exposure. Over the last decade, it has outperformed the Nifty 50 in terms of diversification, with mid- and small-cap stocks showing higher growth potential. BSE 500 ETFs offer a cost-effective, passive way to access this diversified market.

Top BSE 500 ETFs in 2026

BSE 500 ETF Stock Screener

BSE 500 ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape

Created by

@tickertape tickertape

Showing 1 - 3 of 3 results

last updated at 6:30 AM IST

	NameStocks (3)↓	↓Sub-SectorSub-Sector↓	↓Market CapMarket Cap↓	↓Close PriceClose Price↓	↓PE RatioPE Ratio↓	↓1D Return1D Return↓	↓1M Return1M Return↓	↓6M Return6M Return↓	↓1Y Return1Y Return↓	↓PB RatioPB Ratio↓	↓Return on EquityReturn on Equity↓	↓ROCEROCE↓	↓Dividend YieldDiv Yield↓	↓Debt to EquityDebt to Equity↓	↓Volatility vs NiftyVolatility vs Nifty↓
1.	ICICI Prudential BSE 500 ETF BSE500IETF	EquityEquity	101.39101.39	39.2639.26	--	-1.63-1.63	-3.54-3.54	1.921.92	6.986.98	--	--	--	0.000.00	--	1.081.08
2.	HDFC BSE 500 ETF HDFCBSE500	EquityEquity	8.508.50	37.4937.49	--	-0.64-0.64	-3.10-3.10	2.802.80	7.677.67	--	--	--	--	--	1.111.11
3.	Mirae Asset BSE 500 Dividend Leaders 50 ETF DIVIDEND	EquityEquity	7.017.01	37.1837.18	--	-0.61-0.61	0.000.00	4.534.53	4.534.53	--	--	--	--	--	1.561.56

Edit Filters

Analyse BSE 500 ETFs further

Visit 'BSE 500 ETFs' Screener

Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Selection criteria: Based on publicly listed BSE 500 ETFs | Market Cap: Sorted from highest to lowest

Overview of Top BSE 500 ETFs in India

ICICI Prudential BSE 500 ETF

This ETF tracks the BSE 500 Index, providing exposure to the top 500 companies listed on the BSE. It offers a diversified portfolio across sectors and market capitalisations, giving investors passive, low-cost access to the broad Indian equity market.

HDFC BSE 500 ETF

The HDFC BSE 500 ETF replicates the BSE 500 Index, which includes 500 of India’s largest and most liquid stocks. This ETF offers investors a diversified, passive investment option with exposure to a broad range of industries, reducing stock-specific risk while capturing overall market growth.

Mirae Asset BSE 500 Dividend Leaders 50 ETF

This ETF tracks the BSE 500 Dividend Leaders 50 Index, which focuses on companies that offer high dividend yields within the BSE 500 universe. It offers investors a balanced mix of income generation through dividends and growth through exposure to well-established, dividend-paying companies.

What are BSE 500 ETFs?

BSE 500 ETFs are exchange-traded funds that track the BSE 500 Index, comprising 500 companies listed on the Bombay Stock Exchange. These ETFs offer diversified exposure to various sectors, including large, mid, and small-cap stocks. They provide a passive, cost-effective way to invest in India’s broad market.

How to Invest in BSE 500 ETFs?

Here's how you can invest in BSE 500 ETFs using Tickertape -

Create an account on the Tickertape or log in if you already have one.
Open Tickertape Stock Screener
Filter ETFs based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.

Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!

Advantages of Investing in BSE 500 ETFs in India

Broad Market Coverage

The BSE 500 Index comprises the top 500 companies by market capitalisation on the Bombay Stock Exchange, covering large-, mid-, and small-cap stocks. This breadth captures over 90% of the Indian market’s investable universe, offering near-complete equity market representation in a single ETF. This is broader than the Nifty 50 or the BSE Sensex alone.

Passive Diversified Exposure

BSE 500 ETFs use a rules-based index construction, reducing stock-selection bias. Since the index spans sectors such as financials, technology, consumer goods, industrials, and healthcare, ETFs tracking it naturally diversify sector risk across the economy.

Reduced Stock-Specific Performance

Individual stocks, especially in mid- and small-cap stocks, can swing widely. BSE 500 ETFs dilute this by aggregating exposures. Historically, during broad market rallies, diversification has improved risk-adjusted returns relative to concentrated indices.

Cost Efficiency with Transparency

BSE 500 ETFs, being passive, typically have lower expense ratios than actively managed funds covering the same universe. Lower ongoing costs can improve long-term accumulations, especially for buy-and-hold investors.

Download Now

Risks of Investing in BSE 500 ETFs in India

Market Risk Across Caps

BSE 500 ETFs include small-cap and mid-cap stocks, which historically show higher volatility than large caps. During market downturns, the small-cap portion can drag on overall performance more than large-cap benchmarks.

Liquidity Variability

Some small and mid-cap stocks within the BSE 500 may have lower trading volumes. During market stress, these liquidity constraints can widen bid-ask spreads and impact ETF pricing efficiency compared to large-cap-only ETFs.

Sector-Tilt Exposure Risk

Even broad indices can experience latent biases, for example, high weightage to financials or cyclical sectors. In periods where those sectors underperform, the BSE 500 ETF will reflect that weakness proportionally.

Factors to Consider Before Investing in BSE 500 ETFs

Investment Objective Alignment

BSE 500 ETFs are suited for broad equity exposure. Compare this with narrower options such as the Nifty 50 or sector ETFs to assess whether you want full-market coverage or targeted themes.

Cost Considerations

Beyond the ETF’s expense ratio, consider brokerage, bid-ask spreads, and taxes. These can vary based on ETF liquidity and trading frequency and can affect net returns over time.

Index Construction and Rebalancing

Understanding how the BSE 500 Index is constructed and rebalanced helps assess turnover and shifts in exposure over time. Indices with higher turnover can lead to slightly more tracking error or trading costs.

Risk Tolerance

Since the BSE 500 includes a significant mid- and small-cap portion, determine whether your risk profile can accommodate higher short-term volatility compared to large-cap-only products.

Taxation of BSE 500 ETFs

BSE 500 ETF taxation depends on the ETF’s equity-oriented structure and the holding period, which defines the applicable capital gains rules.

Holding Period	Tax Treatment
Short-Term (< 12 months )	Gains taxed at a flat rate of 20% (increased from the previous 15%).
Long-Term (> 12 months)	Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year.

Conclusion

BSE 500 ETFs provide investors with an efficient, cost-effective way to access a broad, diversified portfolio of Indian stocks. While they offer significant growth potential by including mid and small caps, investors should be mindful of risks such as market volatility and tracking errors. Understanding these factors ensures that BSE 500 ETFs align well with your investment strategy and goals.

Popular Stock Collections

Popular Mutual Fund Collections

Frequently Asked Questions on BSE 500 ETFs

What is the BSE 500 ETF?
A BSE 500 ETF is an exchange-traded fund that tracks the BSE 500 Index, which includes the top 500 companies listed on the Bombay Stock Exchange. These ETFs provide passive exposure to a broad spectrum of the Indian market, spanning large, mid, and small-cap stocks.
What are the advantages of investing in BSE 500 ETFs?
BSE 500 ETFs offer broad market diversification, covering 500 of India’s largest, mid, and small-cap companies. They provide low-cost, passive exposure to a wide range of sectors, helping reduce individual stock risk. Additionally, these ETFs are liquid and trade on exchanges like regular stocks, offering flexibility.
What are the risks of investing in BSE 500 ETFs?
While BSE 500 ETFs offer diversification, they are still subject to market risk, as their performance mirrors the underlying index. Mid- and small-cap stocks in the ETF may be more volatile, and tracking errors may cause slight deviations from the index's returns. Liquidity can also be a concern in smaller stocks.
Are BSE 500 ETFs passively managed?
Yes, BSE 500 ETFs are passively managed. They aim to replicate the performance of the BSE 500 Index by investing in the same securities in the same proportion as the index. This passive management helps keep costs low compared to actively managed funds.
Are BSE 500 ETFs a good investment?
BSE 500 ETFs can be a good investment for those seeking broad exposure to the Indian stock market with a low-cost, diversified approach. They offer long-term growth potential but carry market risks, including volatility in mid- and small-cap stocks. Whether they are suitable depends on individual investment goals and risk tolerance.
How to sell BSE 500 ETFs?
BSE 500 ETFs can be sold on the stock exchange via your demat account. You need to place a sell order during trading hours, and the trade settles through the standard settlement cycle.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.