Good afternoon :)

List of Best Quality ETFs in India 2026

Quality ETFs in India track indices like the Nifty200 Quality 30, which selects companies with strong profitability and low leverage. As of early 2026, the index delivered 53.7% 3-year returns and 74.7% 5-year returns, highlighting steady performance from quality-focused stocks across market cycles.

Top Quality ETFs in 2026

Quality ETF Stock Screener

Quality ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape

Showing 1 - 8 of 8 results

last updated at 6:30 AM IST 
NameStocks (8)Sub-SectorSub-SectorMarket CapMarket CapClose PriceClose PricePE RatioPE Ratio1D Return1D Return1M Return1M Return6M Return6M Return1Y Return1Y ReturnPB RatioPB RatioReturn on EquityReturn on EquityROCEROCEDividend YieldDiv YieldDebt to EquityDebt to EquityVolatility vs NiftyVolatility vs Nifty
1.SBI Nifty 200 Quality 30 ETFSBIETFQLTYEquityEquity47.2247.22227.32227.32---0.57-0.57-1.91-1.913.713.714.324.32------0.000.00--1.141.14
2.DSP Nifty Midcap 150 Quality 50 ETFMIDQ50ADDEquityEquity24.0224.02244.70244.70--0.620.62-1.85-1.85-1.85-1.854.914.91----------1.201.20
3.HDFC Nifty100 Quality 30 ETFHDFCQUALEquityEquity16.0616.0659.2259.22---1.12-1.12-2.34-2.343.953.954.464.46----------1.091.09
4.ICICI Prudential Nifty 200 Quality 30 ETFQUAL30IETFEquityEquity11.4711.4721.6321.63---0.37-0.37-2.35-2.353.943.944.194.19----------1.021.02
5.ADITYA BSL Nifty 200 Quality 30 ETFNIFTYQLITYEquityEquity7.967.9621.8221.82---0.64-0.64-1.98-1.983.953.954.404.40----------1.071.07
6.Edelweiss Nifty500 Multicap Momentum Quality50 ETFEMULTIMQEquityEquity7.417.4141.3541.35--0.680.68-0.86-0.86-0.31-0.312.432.43----------1.331.33
7.DSP Nifty500 Flexicap Quality 30 ETFFLEXIADDEquityEquity6.836.8310.4110.41---1.23-1.23-2.25-2.25-2.35-2.35-2.35-2.35----------1.041.04
8.Kotak Nifty200 Quality 30 ETFQUALITY30EquityEquity6.256.2521.1021.10---1.26-1.26-2.63-2.634.774.770.960.96----------1.111.11

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 Quality ETFs in India

Motilal Oswal BSE Quality ETF

This ETF tracks the BSE Quality Index, which selects companies with stable earnings, strong balance sheets and high return ratios. It follows a rules-based approach that focuses on profitability, low leverage, and consistent performance. The ETF provides exposure to financially sound companies across sectors with disciplined rebalancing.

SBI Nifty 200 Quality 30 ETF

This ETF replicates the Nifty 200 Quality 30 Index, which picks 30 high-quality companies based on ROE, financial leverage and earnings stability. It gives concentrated exposure to fundamentally strong large and mid-cap stocks. The ETF maintains index weights through passive management and rebalances them in accordance with the index methodology.

HDFC Nifty100 Quality 30 ETF

This ETF tracks the Nifty100 Quality 30 Index, investing in 30 companies with strong profitability, low debt and consistent earnings. It aims to capture stable performers within the Nifty 100 universe. The ETF mirrors the index through systematic replication and adjusts its holdings at scheduled rebalance intervals.

Kotak Nifty200 Quality 30 ETF

This ETF follows the Nifty200 Quality 30 Index, selecting companies with high return on equity, low leverage and predictable earnings. It provides exposure to high-quality large and mid-cap names in the Nifty 200. The ETF uses a passive structure to match index composition and maintain the quality tilt.

Edelweiss Nifty500 Multicap Momentum Quality50 ETF

This ETF combines momentum and quality factors using the Nifty500 Multicap Momentum Quality 50 Index. It invests in 50 companies screened for strong price momentum and high-quality fundamentals. The ETF spans large-, mid, and small-cap stocks and applies a rules-driven approach to selection and periodic rebalancing.

What are Quality ETFs?

Quality ETFs invest in companies that score high on quality metrics such as stable earnings, low debt, strong return on equity and consistent profitability. These ETFs track quality-focused indices and give exposure to financially sound companies that demonstrate durable business performance across market cycles.

How to Invest in Quality ETFs?

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

  1. Create an account on the Tickertape or log in if you already have one.
  2. Open Tickertape Stock Screener
  3. Filter Quality 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.
  4. 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 Quality ETFs in India

Exposure to Strong Fundamental Companies

Quality ETFs track indices like the Nifty200 Quality 30, which select companies with high return on equity, stable earnings and low leverage, emphasising fundamentally strong businesses with durable operating models.

Proven Quality Factor Outperformance in India

Research on the quality factor (‘QMJ’) shows that quality stocks in India have historically generated positive alpha on a risk-adjusted basis, outperforming broad equity factors such as size or momentum.

Consistent Multi-Year Return Track Record

The Nifty200 Quality 30 Index has delivered meaningful multi-year gains, including over 53% 3-year returns and around 74% 5-year returns as of early 2026, reflecting steady compounding from quality-tilted portfolios.

Resilience During Market Stress

Quality ETFs typically include industry-leading companies with strong balance sheets and stable profitability, resulting in more resilient behaviour during volatile phases compared with broader indices that include weaker firms.

Install the Tickertape app and enjoy a more hands-on investing experience
  • portfolio-iconReceive real-time market alerts for timely decisions
  • portfolio-iconMonitor your portfolio from the palm of your hands
  • portfolio-iconWatchlist stocks and mutual funds to stay updated

Risks of Investing in Quality ETFs in India

Underperformance During Cyclical or Growth Rallies

Quality ETFs can lag during phases when markets reward high-growth, cyclical or lower-quality companies, as the factor tilt favours stability over aggressive growth.

Limited Diversification Across Factor Styles

A pure quality tilt reduces exposure to styles like value, momentum or size; extended periods of value or cyclical outperformance may lead quality ETFs to trail broad benchmarks.

Higher Concentration in Fewer Stocks

Quality indices such as the Nifty200 Quality 30 include only about 30 stocks, creating higher concentration risk if a few constituents weaken simultaneously.

Slightly Higher Costs Than Broad ETFs

Some quality ETFs carry marginally higher expense ratios and turnover levels compared to broad market-cap weighted ETFs, which can slightly reduce long-term net returns.

Factors to Consider Before Investing in Quality ETFs

Index Methodology

The index methodology defines how ROE, earnings stability and leverage are measured and weighted, influencing the selection universe and shaping return characteristics.

Historical Performance Patterns

Performance patterns highlight how quality indices behave across cycles, including periods of correction and recovery, with long-term returns (like 5-year data) differing significantly from short-term results.

Tracking error and costs

Tracking error and expenses determine how closely an ETF mirrors its benchmark and how much costs influence net realised performance.

Liquidity and AUM

Liquidity and AUM metrics indicate trading smoothness, bid-ask spread behaviour and scalability; higher AUM generally supports b

Taxation on Quality ETFs

Quality ETFs follow capital gains tax rules linked to the holding period. Short-term and long-term gains attract different tax treatment.

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

Quality ETFs offer a structured way to invest in financially resilient companies that demonstrate strong profitability and disciplined balance sheets. Historical index returns show that quality-oriented portfolios have delivered meaningful multi-year gains, helping investors capture fundamental strength across market phases. As with any thematic approach, understanding index methodology, cost and how these ETFs fit your broader investment strategy can support more informed decision-making.

Frequently Asked Questions on Quality ETFs

  1. What is a quality ETF?

    A quality ETF invests in companies with strong financial fundamentals such as high return on equity, low debt and stable earnings. It tracks a quality-focused index and uses a rules-based process to select financially resilient businesses.

  2. What makes the Quality factor different from Value or Momentum?

    The Quality factor emphasises financial strength (ROE, leverage, earnings stability). Value focuses on undervalued stocks based on valuation ratios, while Momentum targets stocks with strong recent price trends. Each factor captures a different source of returns.

  3. Do Quality ETFs work well during market volatility?

    Quality ETFs tend to include companies with stable earnings and lower debt, which may make their performance more resilient during volatile periods. Actual outcomes still depend on overall market and sector conditions.

  4. How are Quality ETFs taxed in India?

    Quality ETFs fall under equity taxation. STCG applies if sold within one year, and LTCG applies if sold after one year, following standard equity ETF tax rules in India.

  5. Are Quality ETFs suitable for long-term investing?

    Quality ETFs select financially strong companies, which may appeal to those who prefer stable fundamentals. Suitability varies by goals, risk appetite and time horizon, and should be evaluated independently.

  6. How to sell quality ETFs?

    Quality ETFs can be sold on the exchange via your demat account by placing a sell order during trading hours. The transaction executes at prevailing market prices and settles normally.