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List of Best Sectoral ETFs in India 2026

Sectoral ETFs in India have gained traction as investors seek focused exposure to key industries. The banking sector alone accounts for nearly 30% of the Nifty 50’s weight, while sectors like IT, pharma and energy continue to drive market activity. Growing ETF trading volumes highlight rising interest in sector-specific themes.

Top Sectoral ETFs in 2026

Sectoral ETF Stock Screener

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Showing 1 - 20 of 46 results

last updated at 9:45 PM IST 
NameStocks (46)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.Nippon India ETF Nifty Bank BeESBANKBEESEquityEquity15,280.2915,280.29620.95620.95--0.230.23-0.17-0.178.228.2220.8420.84------0.000.00--0.970.97
2.Kotak Nifty Bank ETFBANKNIFTY1EquityEquity12,400.2512,400.25621.81621.81--0.270.27-0.23-0.238.418.4120.8820.88------0.000.00--1.051.05
3.Nippon India ETF Nifty PSU Bank BeESPSUBNKBEESEquityEquity362.85362.8598.8098.80--0.570.570.340.3429.0529.0542.0842.08------0.000.00--1.811.81
4.SBI Nifty Bank ETFSETFNIFBKEquityEquity349.06349.06615.65615.65--0.280.28-0.19-0.198.168.1620.8820.88------0.000.00--1.031.03
5.Kotak Nifty PSU Bank ETFPSUBANKEquityEquity166.15166.15885.00885.00--0.780.780.680.6829.3329.3341.1741.17------0.000.00--1.711.71
6.Aditya Birla Sun Life Nifty Bank ETFABSLBANETFEquityEquity124.65124.6561.3961.39--0.130.13-0.26-0.268.448.4420.6320.63------0.000.00--1.011.01
7.HDFC Nifty Banking ETFHDFCNIFBANEquityEquity124.20124.2061.7361.73--0.280.28-0.13-0.138.288.2820.7620.76------0.000.00--1.011.01
8.Bajaj Finserv Nifty Bank ETFBANKBETFEquityEquity113.29113.2960.9160.91--0.310.310.250.258.058.0520.7820.78----------1.061.06
9.Mirae Asset Nifty EV and New Age Automotive ETFEVINDIAEquityEquity81.8681.8630.8530.85--0.750.75-4.16-4.165.805.806.566.56----------1.341.34
10.Nippon India Nifty Auto ETFAUTOBEESEquityEquity81.3281.32285.10285.10--1.141.14-3.91-3.9116.6616.6618.9518.95----------1.401.40
11.UTI Nifty Bank ETFBANKBETAEquityEquity56.5956.5962.1962.19--0.290.290.500.508.708.7021.1121.11------0.000.00--1.021.02
12.Groww Nifty EV & New Age Automotive ETFGROWWEVEquityEquity54.8054.8030.6430.64--0.390.39-4.28-4.284.864.865.765.76----------1.401.40
13.ICICI Pru Nifty Financial Services Ex-Bank ETFFINIETFEquityEquity50.0750.0732.1732.17--0.750.75-2.99-2.998.138.1323.4523.45----------1.541.54
14.Axis NIFTY Healthcare ETFAXISHCETFEquityEquity47.0347.03144.49144.49---0.16-0.16-3.22-3.22-2.47-2.471.231.23----------1.281.28
15.Groww Nifty India Defence ETFGROWWDEFNCEquityEquity45.6945.6979.6379.63---0.82-0.820.930.931.971.9732.0332.03----------2.252.25
16.Aditya BSL Nifty Healthcare ETFHEALTHYEquityEquity43.5743.5714.5814.58---0.27-0.27-3.70-3.70-2.34-2.341.741.74----------1.211.21
17.Aditya BSL Nifty IT ETFTECHEquityEquity38.8638.8639.3539.35---5.75-5.75-4.19-4.194.774.77-12.73-12.73----------1.671.67
18.ICICI Prudential Nifty Auto ETFAUTOIETFEquityEquity37.8337.8328.6328.63--1.091.09-3.51-3.5117.2417.2419.0919.09----------1.421.42
19.ICICI Prudential Nifty Private Bank ETFPVTBANIETFEquityEquity37.7237.7229.1529.15--0.070.070.070.077.527.5217.6417.64------0.000.00--1.041.04
20.Mirae Asset Nifty PSU Bank ETFBANKPSUEquityEquity36.4236.4289.1389.13--0.620.620.650.6529.6429.6442.2042.20----------1.731.73

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 Sectoral ETFs in India

Nippon Nifty Bank ETF (BANKBEES)

This ETF tracks the Nifty Bank Index, which includes leading private and public sector banks in India. It offers focused exposure to the banking sector’s lending, credit growth and financial performance trends. The ETF mirrors the index passively and rebalances in line with scheduled index updates.

Kotak Nifty Bank ETF

This ETF follows the Nifty Bank Index and invests in India’s top banking stocks. It provides concentrated exposure to credit demand, deposit growth and interest-rate movements that shape the banking sector. The ETF maintains weights aligned with the index and reflects the financial strength of major banks in the system.

HDFC Nifty Bank ETF

This ETF replicates the Nifty Bank Index, giving exposure to India’s largest and most liquid banking companies. It captures sector performance driven by loan growth, asset quality trends and profitability cycles. The ETF uses a passive structure to match index composition and updates holdings based on scheduled rebalances.

Nippon Nifty PSU Bank ETF (PSUBNKBEES)

This ETF tracks the Nifty PSU Bank Index and invests in public sector banks. It provides targeted exposure to government-owned banks that play a major role in credit expansion across retail and corporate segments. The ETF mirrors the index weights and adjusts holdings as per index methodology and updates.

SBI Nifty Bank ETF

This ETF mirrors the Nifty Bank Index, offering exposure to top private and public sector banks. It reflects sector movements shaped by credit growth, interest-rate shifts and banking system health. The ETF aligns with index weights through a passive approach and rebalances whenever the index undergoes changes.

What are Sectoral ETFs?

Sectoral ETFs invest in companies from a single sector such as banking, IT, pharma, energy or FMCG. These ETFs track a sector-specific index and provide focused exposure to the performance, growth cycles, and trends of that industry through a rules-based, passive approach.

How to Invest in Sectoral ETFs?

Here's how you can invest in Sectoral 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 Sectoral 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 Sectoral ETFs in India

Direct Exposure to Key Growth Industries

Sectoral ETFs such as Nifty Bank ETFs track focused industry indexes like the Nifty Bank Index, giving direct access to core economic segments. Bank ETFs mirror the performance of India’s top 12 banks, which drive credit expansion and overall economic activity.

Strong Historical Returns in Leading Sectors

Banking sector ETFs have shown meaningful historical returns. For example, Nippon India ETF Nifty Bank BeES delivered around +20.4% 1-year returns, and other Bank Nifty ETFs show similar patterns, highlighting how sector strength can reflect in ETF outcomes.

Built-In Diversification Within a Sector

A sectoral ETF diversifies within its industry. For instance, a PSU bank ETF like Nippon India ETF Nifty PSU Bank BeES spreads exposure across major public sector banks such as SBI, Bank of Baroda and Canara Bank rather than relying on a single stock.

Low Costs and High Liquidity in Popular Sectors

Many sectoral ETFs—especially popular ones like Bank ETFs—maintain competitive expense ratios (often below 0.20%), low tracking error and strong liquidity, enabling efficient entry and exit.

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Risks of Investing in Sectoral ETFs in India

High Concentration in One Industry

Sectoral ETFs expose all your investment to one sector. Bank ETFs depend on credit cycles, interest rate movement and asset quality. A slowdown in credit growth or rising NPAs can hurt the entire basket simultaneously.

Higher Volatility Than Broad Market Indexes

Sectors often experience sharper swings than diversified indices. A downturn in banking, pharma or energy can lead to faster and deeper drawdowns because the ETF lacks exposure to other sectors.

Strong Sensitivity to Policy and Regulatory Changes

Sector-based ETFs react quickly to policy shifts. Banking regulations, interest rate changes or tax updates can alter lending margins and influence valuations across all banks in the ETF.

Wide Performance Swings Across Market Cycles

Sectoral ETFs may show large short-term performance variations. While long-term sector trends may be constructive, short-term outcomes depend heavily on sector sentiment and macro conditions.

Factors to Consider Before Investing in Sectoral ETFs

Sector Outlook

Sector trends for Bank ETFs depend on macro factors such as credit growth, GDP cycles, interest rate expectations and asset quality. These dynamics influence how the segment behaves across cycles.

Valuation and Returns

Multi-year valuation trends and long-term ETF performance (e.g., Nippon India ETF Nifty PSU Bank BeES) help contextualise sector movement relative to broader market benchmarks.

Liquidity and AUM

Higher AUM and stronger trading volumes improve execution quality and tighter spreads in sectoral ETFs. Lower liquidity may widen bid-ask spreads and affect trade efficiency.

Costs and Tracking

Expense ratios and tracking error impact net outcomes. These vary across ETF issuers and influence how closely the ETF reflects its benchmark.

Diversification Impact

Adding a sectoral ETF adjusts the overall portfolio tilt toward that theme, increasing concentration to a specific industry and influencing diversification and correlation patterns within the portfolio.

Taxation on Sectoral ETFs

Sectoral ETFs are taxed based on how long the units are held. Capital gains taxation differs for short-term and long-term investments.

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

Sectoral ETFs offer targeted exposure to India’s strongest and most dynamic industries, allowing investors to track sector performance through a simple, rules-based structure. These ETFs provide a way to study sector cycles, understand how different industries move through economic phases and build focused allocations without selecting individual stocks. Before investing, reviewing sector trends, volatility patterns, liquidity and portfolio fit helps ensure more informed decision-making.

Frequently Asked Questions on Sectoral ETFs

  1. What are sectoral ETFs?

    Sectoral ETFs invest in companies from one sector such as banking, IT, pharma, FMCG or energy. They track a sector-specific index and replicate its composition, providing focused exposure to that industry’s performance and trends.

  2. Is it good to invest in sectoral funds?

    Sectoral funds may perform well during strong industry cycles but carry higher risk due to concentration in one sector. Suitability depends on market conditions, sector behaviour and individual risk tolerance.

  3. What is the difference between sector ETF and individual stocks?

    A sector ETF holds several companies within a sector, spreading risk. Buying an individual stock exposes you to the performance and risks of only one company. Sector ETFs reduce company-specific risk while tracking the sector index.

  4. What are the advantages of investing in Sectoral ETFs?

    They offer focused exposure to important industries in India’s economy, diversify within the sector, mirror index performance and often have lower costs and better liquidity than picking individual stocks.

  5. What are the risks of investing in Sectoral ETFs?

    They concentrate risk in one industry. If the sector faces weak earnings, regulatory shifts or economic pressure, the entire ETF may be impacted. They also tend to be more volatile than diversified market ETFs.

  6. Are Sectoral ETFs suitable for beginners in stock market?

    Sectoral ETFs are thematic and can be more volatile because returns depend on one industry’s cycle. Beginners should understand sector trends and risk levels before considering such products.

  7. How to sell sectoral ETFs?

    Sectoral ETFs can be sold through your demat account by placing a sell order on the stock exchange. The execution happens at market price and follows standard settlement processes.