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List of Best Smallcap ETFs in India 2026

Smallcap ETFs in India track indices of small-cap companies, typically those ranked beyond the top 250 by market capitalisation. The Nifty Smallcap 100 Index represents about 4.77% of the free float market capitalization on the NSE as of September 30, 2025, highlighting its distinct role in the broader market. These ETFs offer a structured, diversified way to invest in small-cap stocks, providing access to multiple companies through a single fund.

Top Smallcap ETFs in 2026

Smallcap ETF Stock Screener

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NameStocks (8)↓↓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 MidSmallcap400 Momentum Q100 ETFMIDSMALLEquityEquity34.7934.7946.9946.99---0.49-0.49-1.59-1.59-4.39-4.392.732.73----------1.441.44
2.HDFC NIFTY Smallcap 250 ETFHDFCSML250EquityEquity10.1110.11158.39158.39--0.540.54-4.58-4.58-9.02-9.020.940.94----------1.481.48
3.Groww Nifty Smallcap 250 ETFGROWWSC250EquityEquity6.976.979.099.09--0.660.66-5.61-5.61-9.55-9.55-9.55-9.55----------1.231.23
4.Motilal Oswal Nifty Smallcap 250 ETFMOSMALL250EquityEquity6.596.5915.8015.80--0.700.70-4.47-4.47-8.72-8.721.411.41----------1.441.44
5.Mirae Asset Nifty Smallcap 250 ETFSMALL250EquityEquity6.166.1615.7715.77--0.830.83-4.42-4.42-7.67-7.67-7.67-7.67----------1.231.23
6.DSP Nifty Smallcap 250 ETFSMALLADDEquityEquity5.435.4315.8015.80--1.411.41-4.13-4.13-2.47-2.47-2.47-2.47----------1.381.38
7.Zerodha Nifty Smallcap 100 ETFSML100CASEEquityEquity5.405.409.539.53--0.210.21-4.03-4.03-6.29-6.29-6.29-6.29----------1.151.15
8.Mirae Asset Nifty Smallcap 250 Momentum Ql 100 ETFSMALLCAPEquityEquity--42.0342.03--0.290.29-4.63-4.63-9.03-9.03-1.84-1.84----------1.551.55
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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 Small Cap ETFs in India

Mirae Asset Nifty Smallcap 250 ETF

The Mirae Asset Nifty Smallcap 250 ETF tracks the Nifty Smallcap 250 Index. This index includes 250 small companies across various sectors. It provides investors with exposure to the small-cap segment of the market. This segment represents mid- to lower-tier companies within the Indian economy.

HDFC Nifty Smallcap 250 ETF

The HDFC Nifty Smallcap 250 ETF follows the Nifty Smallcap 250 Index. This index consists of 250 small companies. These companies are spread across various industries. The ETF offers exposure to the small-cap space.

Motilal Oswal Nifty Smallcap 250 ETF

The Motilal Oswal Nifty Smallcap 250 ETF tracks the Nifty Smallcap 250 Index. This index represents 250 small companies. The ETF covers a broad range of small-cap stocks. It offers exposure to emerging sectors and smaller companies.

Zerodha Nifty Smallcap 100 ETF

The Zerodha Nifty Smallcap 100 ETF tracks the Nifty Smallcap 100 Index. This index includes 100 small companies. This ETF provides exposure to a select group of small-cap stocks in India. It focuses on companies with smaller market capitalisations.

What are Small Cap ETFs?

Small cap ETFs are exchange-traded funds that track small-cap companies, usually those ranked below the top 250 in market size. These ETFs invest in a variety of small-cap stocks, offering a cost-effective way to invest in the small-cap segment.

How to Invest in Small Cap ETFs?

Investing in small cap ETF in India using Tickertape is a straightforward process. Tickertape is a powerful stock analysis and screening tool that helps you make informed investment decisions. Here’s how you can use Tickertape to invest in small cap ETFs:

  1. Sign Up and Log In: You can create an account on the Tickertape or log in if you already have one.
  2. Search for smallcap ETFs: Go to Tickertape Stock Screener and search for ‘smallcap ETFs’.
  3. Use Filters: You can apply over 200 filters to get stocks sorted based on criteria like market cap, P/E ratio, and more.
  4. Analyse Stock Data: Tickertape provides comprehensive data on each stock, including financials, performance metrics, future projections, red flags, and more. You can review this data to assess each company’s health and potential in-depth.
  5. Add to Watchlist: You may keep track of potential investments by adding them to your watchlist.
  6. Invest Through Your Broker: Once you’ve decided on a stock, you can place a buy order through your brokerage account linked to Tickertape.

You can stay updated with each of your favourite stocks’ alerts and announcements 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 Smallcap ETFs in India

Higher Growth Potential

As of 8th January 2025, the Nifty Smallcap 50 Index has delivered a return of 136.52% over the last 5 years, compared to 84.91% from the Nifty 50 Index. This shows that small-cap stocks may offer higher growth potential during favoured market conditions.

Diversification Across Sectors

Small-cap ETFs give exposure to a variety of sectors, including technology, healthcare, consumer goods, and energy. This helps spread the risk by reducing reliance on just one industry. For example, the Nifty Smallcap 100 Index includes companies from over 20 sectors, which helps reduce risk by diversifying across different industries.

Cost-Effective Investment

Small-cap ETFs usually have lower expense ratios compared to actively managed funds. In India, the average expense ratio for small-cap ETFs ranges from 0.06% to 0.8%, which is much lower than the 1% to 2% charged by actively managed funds. This makes small-cap ETFs a more cost-effective investment choice.

Easy Access to Small-Cap Market

Investing in small-cap stocks individually can be difficult due to their volatility and the limited information available. Small-cap ETFs make it easier to access this market segment by investing in a diversified portfolio of small-cap companies, reducing the need for detailed research on individual stocks.

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Risks of Investing in Smallcap ETFs in India

Higher Volatility

Small-cap stock prices can change more dramatically in both good and bad market conditions. This leads to bigger short-term price swings in small-cap ETFs, especially during market downturns.

Economic Sensitivity

Small-cap companies are more affected by economic changes than larger companies. During slowdowns or recessions, they may face challenges like lower revenue, higher costs, and difficulty raising funds, which can hurt the performance of small-cap ETFs.

Sector-Specific Risks

Even though small-cap ETFs are diversified, they can still be impacted by risks from certain sectors. For example, if a small-cap ETF has heavy exposure to sectors like technology or healthcare, any downturn in those sectors can affect the small cap ETF share price.

Limited Access to Capital

Small-cap companies often have a harder time raising funds compared to large companies. This can make it tough for them to expand, invest in new projects, or handle economic downturns. As a result, the companies in small-cap ETFs may struggle with funding, which can hurt their growth and profits.

Factors to Consider Before Investing in Smallcap ETFs

Economic Conditions

Small-cap companies are more sensitive to economic changes than large-cap companies. During periods of economic slowdowns or recessions, small-cap stocks may face greater challenges, such as lower demand for their products or difficulty in accessing capital. As a result, their performance can be more affected by macroeconomic factors.

Diversification

Small-cap ETFs offer diversification within the small-cap segment but still represent a more concentrated investment compared to broader market ETFs. While they help spread risk across different companies within the small-cap space, they may not fully protect against risks associated with specific sectors or industries.

Expense Ratio

Small-cap ETFs are generally more cost-effective than actively managed funds. However, it’s important to compare the expense ratios of different small-cap ETFs. Even small differences in fees can add up over time, especially for long-term investors. Lower expense ratios typically mean that more of the investment goes toward growth rather than fees.

Sector Exposure

Small-cap ETFs often have exposure to specific sectors, such as technology, biotech, or consumer goods, which can experience higher growth rates. However, this concentrated exposure also means that downturns in a particular sector can have a bigger impact on the ETF’s performance.

Conclusion

Small-cap ETFs give investors a chance to invest in smaller companies with high growth potential. However, small-cap ETFs also come with higher volatility, meaning their prices can change quickly, and they are more sensitive to economic changes.

Small-cap ETFs require careful consideration of market conditions and other factors. That’s why investors can use Tickertape Stock Screener, which can help investors analyse small cap ETFs with over 200 filters, allowing them to assess small cap ETF list based on factors like expense ratios, sector exposure, and more. This helps investors make informed decisions and align their small-cap ETF investments with their investment thesis.

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Frequently Asked Questions on Smallcap ETFs

  1. What are small cap ETFs?

    Smallcap ETFs are exchange-traded funds that track small-cap companies, typically those ranked beyond the top 250 by market capitalization. These ETFs offer investors exposure to a diverse range of small-cap stocks across various sectors.

  2. How do small cap ETFs work?

    Smallcap ETFs track indices like the Nifty Smallcap 250 or Nifty Smallcap 100, which represent small-sized companies across various industries. For example, the Nifty Smallcap 250 ETF follows the Nifty Smallcap 250 Index, giving investors exposure to 250 small-cap companies.

  3. What are the advantages of investing in small cap ETFs?

    Smallcap ETFs offer the potential for higher growth compared to large-cap stocks as small-cap companies are in the growth phase. They provide diversification across various sectors and are more cost-effective than actively managed funds. Smallcap ETFs make it easier for investors to access this high-growth segment without the need to pick individual stocks.

    Disclaimer: This information is for educational purposes only and should not be considered investment advice.

  4. What are the risks of investing in small cap ETFs?

    Smallcap ETFs are more volatile than large-cap ETFs. They are more sensitive to market fluctuations, economic downturns, and sector-specific issues. Small-cap companies often have fewer resources and face challenges like limited access to capital, which can impact their performance.

  5. What are the costs associated with smallcap ETFs?

    Smallcap ETFs generally have lower expense ratios compared to actively managed funds. The expense ratio for a smallcap ETF usually ranges from 0.2% to 0.5%, making them a cost-effective way to invest in small-cap stocks.

  6. Are smallcap ETFs suitable for beginners in the stock market?

    It depends on the investor’s risk tolerance, investment horizon, and comfort with market volatility. Small-cap stocks can be more volatile than large-cap stocks, and their prices can fluctuate significantly. Beginners should be aware of the risks before investing in small-cap ETFs.

    Disclaimer: This information is for educational purposes only and should not be considered investment advice.

  7. What is the Nifty smallcap 250 ETF?

    The Nifty small cap ETF 250 tracks the Nifty Smallcap 250 Index, which includes 250 small-cap companies across various sectors. This ETF provides investors with diversified exposure to a broad range of small-cap stocks in India, offering a way to invest in smaller companies with growth potential.

  8. Are there any Nifty smallcap 250 ETFs?

    Yes, there are Nifty Smallcap 250 ETFs in India. These ETFs track the Nifty Smallcap 250 Index, which includes 250 small-cap companies. Some examples of ETFs that track this index include the following:
    1. HDFC Nifty Smallcap 250 ETF
    2. Mirae Asset Nifty Smallcap 250 ETF
    3. Motilal Oswal Nifty Smallcap 250 ETF

    Disclaimer: The above Nifty smallcap 250 list is for educational purposes only and should not be considered investment advice.

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.