What is a financial services ETF?

A financial services ETF is an exchange-traded fund that invests in a basket of banks, NBFCs, insurers, and other listed financial institutions. It tracks a defined index and offers low-cost exposure to the financial ecosystem.

What does the Nifty financial services ETF track?

A Nifty financial services ETF follows the Nifty Fin Service index, which includes major banks, housing finance companies, NBFCs, insurance firms, and capital market players. It mirrors the performance of the financial services industry through one traded unit.

Is there a financial Sector ETF in India?

Yes, there are several financial sector ETF options, including funds that track the Nifty Financial Services and Nifty Financial Services Ex-Bank indices.

How is a financial services ETF different from FINNIFTY ETF?

A Financial Services ETF tracks the Nifty Fin Service index, which covers financial institutions across lending, insurance, NBFCs, and capital markets. A FINNIFTY ETF tracks the Nifty Financial Services 25/50 index and has a broader representation with weight caps to maintain diversification.

Are financial ETFs useful for diversification?

Financial ETFs bundle multiple financial institutions such as banks, insurers, NBFCs, and wealth managers into one fund, offering diversified exposure within the financial sector. Disclaimer: This information is for educational purposes only and should not be considered investment advice.

Who should look at Nifty Fin Service–based ETFs?

ETFs based on Nifty Fin Service may look appealing for those seeking transparent, rules-based exposure to India’s financial institutions without picking individual financial stocks. Disclaimer: This information is for educational purposes only and should not be considered investment advice.

How to sell financial services ETFs?

Financial Services ETFs can be sold on the stock exchange through your demat account. A sell order placed during market hours is executed at market price and settled normally.

List of Best Financial Services ETFs in India 2026

India’s financial services sector is a key part of the economy, with financial companies making up around 37% of the Nifty 50’s weight. The wider services sector contributes nearly 55% to India’s GVA, reflecting the importance of banks, insurers, NBFCs, and fintech players. Financial Services ETFs track the Nifty Financial Services Index, giving low-cost and transparent exposure to the country’s largest financial institutions through one listed product.

Top Financial Services ETFs in 2026

Financial Services ETF Stock Screener

Financial Services ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape

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	NameStocks (2)↓	↓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.	Mirae Asset Nifty Financial Services ETF BFSI	EquityEquity	105.98105.98	28.7328.73	--	0.600.60	-0.24-0.24	5.395.39	18.8718.87	--	--	--	--	--	1.151.15
2.	ICICI Pru Nifty Financial Services Ex-Bank ETF FINIETF	EquityEquity	50.0750.07	32.1732.17	--	0.750.75	-2.99-2.99	8.138.13	23.4523.45	--	--	--	--	--	1.541.54

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Analyse Financial Services ETFs further

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 available information | Sorted by market capitalisation from highest to lowest.

Overview of Top Financial Services ETFs

Mirae Asset Nifty Financial Services ETF

Mirae Asset Nifty Financial Services ETF follows the Nifty Financial Services Index, giving exposure to leading banks, NBFCs, insurance companies, housing finance firms, and other financial institutions. It offers a low-cost and transparent way to track the performance of India’s financial services sector through a single listed product.

ICICI Prudential Nifty Fin Service Ex-Bank ETF

ICICI Prudential Nifty Fin Svc Ex-Bank ETF tracks an index that excludes banks and focuses on non-bank financial companies such as insurers, NBFCs, housing finance players, broking firms, and fintech-linked institutions. It provides targeted exposure to the non-banking side of India’s financial services ecosystem at a cost-efficient price point.

What are Financial Services ETFs?

Financial Services ETFs are exchange-traded funds that invest in a basket of listed financial companies such as banks, insurers, NBFCs, housing finance firms, and other financial institutions. These ETFs track indices like the Nifty Financial Services index and mirror their performance.

How to Invest in Financial Services ETFs?

Here's how you can invest in Financial Services ETFs using Tickertape -

Create an account on the Tickertape or log in if you already have one.
Open Tickertape Stock Screener
Filter Financial Services ETFs screener 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.

You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. 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 Financial Services ETFs in India

Exposure to a High-Weight Sector

Financial companies make up about 37% of the Nifty 50 index, showing how central banking, insurance, and finance firms are to India’s market performance. A Financial Services ETF captures this large share of the market in one product.

Strong Credit Growth

India’s outstanding bank credit recently crossed ₹200 lakh crore, marking a 14.5% year-on-year rise in credit demand, driven by policy easing and increased economic activity. This growth reflects expanding lending trends that benefit financial-sector companies in ETFs.

Services Sector Contribution

The services sector, which includes financial services, contributed about 55% of India’s Gross Value Added (GVA) in FY 2024-25, underlining the importance of financial intermediaries to overall economic output.

Transparent Index Tracking

Financial Services ETFs follow indices like Nifty Financial Services, which reflect the performance of major banks, insurers, NBFCs and other financial firms. This structured index approach helps keep exposure aligned with the broader industry performance.

Exposure to Expanding Sector

India’s financial services industry is growing quickly, supported by rising income levels and higher demand for banking, credit, insurance, and investment products. Financial services are projected to nearly double profits by FY30, with NBFCs alone expected to grow at 16% annually.

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Risks of Investing in Financial Services ETFs in India

Interest Rate Sensitivity

Financial companies, especially banks, NBFCs, and housing finance firms, react sharply to interest rate changes. When rates rise, borrowing slows, and loan growth weakens. When rates fall too fast, margins compress. This sensitivity can impact the financial sector ETF.

Credit Risk in the System

Financial Services ETFs are exposed to the health of India’s credit market. Although retail credit grew at 15.1% CAGR between FY19–FY25, any rise in NPAs, defaults, or stress in segments like MSME, real estate, or unsecured loans can affect lenders included in the ETF.

Regulatory Dependence

The sector is heavily regulated by the RBI, IRDAI, SEBI, and the Government of India. Policy shifts, such as changes in lending norms, capital requirements, or insurance rules, can influence profitability across multiple companies simultaneously.

Market Cyclicality

Financial services follow economic cycles. Slowdowns in GDP growth, consumption, or investment reduce demand for loans, insurance, wealth products, and payments. Since the services sector contributes ~55% to India’s GVA, broader macro trends directly influence the ETF.

High Index Concentration

Financial Services ETFs follow indices like Nifty Financial Services, which have high weightage in a small set of large banks and NBFCs. A sharp decline in one heavyweight can pull down the entire ETF even if smaller companies perform well.

Digital and Cybersecurity Risks

The financial sector runs on digital infrastructure. With UPI processing 20+ bn transactions per month, higher digital dependence increases vulnerability to outages, fraud risks, and cybersecurity threats that could have sector-wide implications.

Factors to Consider Before Investing in Financial Services ETFs

Sector Cycles

The performance of financial services is dependent on the economy. For example, strong GDP growth increases credit, insurance, and investment activity, while slowdowns reduce demand for loans and financial products. Understanding the economic cycle helps set expectations for ETF returns.

Interest Rate Environment

Interest rates directly affect lenders and insurers. Any changes in repo rates, loan pricing, and deposit rates influence margins, profitability, and overall sector performance. Monitoring the rate cycle is important before investing in Nifty Financial Services ETFs.

Credit Quality Trends

The performance of banks and NBFCs depends on asset quality. Rising NPAs, delinquency in unsecured loans, or stress in specific sectors can affect multiple companies in the index at once.

Index Composition

Financial Services ETFs track indices like Nifty Financial Services or Nifty Financial Services Ex-Bank. Checking the weightage helps understand whether the ETF is dominated by large banks, NBFCs, insurers, or a mix of financial institutions.

Regulatory Landscape

The sector is highly regulated, so policy changes to lending norms, capital requirements, liquidity rules, insurance pricing, or investment guidelines can affect the ETF’s performance.

Taxation on Financial Services ETFs

Financial Services ETFs are taxed based on how long the units are held, with separate rules for short-term and long-term gains.

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

Financial Services ETFs in India offer a straightforward and low-cost way to follow the performance of banks, insurers, NBFCs, and other major financial institutions that drive a large share of the economy. They provide transparent exposure to India’s expanding credit, insurance, and digital payments ecosystem, while also reflecting sector-specific risks such as interest-rate movements, credit quality shifts, and regulatory changes.

Before investing, it helps to assess factors like the current rate cycle, credit trends, index composition, and liquidity. Reviewing these elements can make it easier to understand how Financial Services ETFs fit into a broader investment approach. Tools like the Tickertape Stock Screener, with over 200 smart filters, can help compare different ETFs and identify the one that aligns best with a chosen financial thesis.

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Frequently Asked Questions on Financial Services ETFs

What is a financial services ETF?
A financial services ETF is an exchange-traded fund that invests in a basket of banks, NBFCs, insurers, and other listed financial institutions. It tracks a defined index and offers low-cost exposure to the financial ecosystem.
What does the Nifty financial services ETF track?
A Nifty financial services ETF follows the Nifty Fin Service index, which includes major banks, housing finance companies, NBFCs, insurance firms, and capital market players. It mirrors the performance of the financial services industry through one traded unit.
Is there a financial Sector ETF in India?
Yes, there are several financial sector ETF options, including funds that track the Nifty Financial Services and Nifty Financial Services Ex-Bank indices.
How is a financial services ETF different from FINNIFTY ETF?
A Financial Services ETF tracks the Nifty Fin Service index, which covers financial institutions across lending, insurance, NBFCs, and capital markets. A FINNIFTY ETF tracks the Nifty Financial Services 25/50 index and has a broader representation with weight caps to maintain diversification.
Are financial ETFs useful for diversification?
Financial ETFs bundle multiple financial institutions such as banks, insurers, NBFCs, and wealth managers into one fund, offering diversified exposure within the financial sector.
Disclaimer: This information is for educational purposes only and should not be considered investment advice.
Who should look at Nifty Fin Service–based ETFs?
ETFs based on Nifty Fin Service may look appealing for those seeking transparent, rules-based exposure to India’s financial institutions without picking individual financial stocks.
Disclaimer: This information is for educational purposes only and should not be considered investment advice.
How to sell financial services ETFs?
Financial Services ETFs can be sold on the stock exchange through your demat account. A sell order placed during market hours is executed at market price and settled normally.

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.