Plugging the global gap

Summary: Staying confined to one market can leave blind spots in your portfolio. True resilience comes from blending local strength with access to industries shaping the global future. The key lies in striking the right balance. Here’s how. Can you build a complete portfolio with Indian stocks alone? Yes, if you’re okay with missing out on global companies reshaping the modern economy. While most Indian portfolios lean heavily on banks, energy giants, IT services and consumer staples, the most powerful global growth engines like chips, EVs (electric vehicles) and AI (artificial intelligence) remain missing. That absence leaves investors tied to one geography and a narrow set of industries. US-focused ETFs (exchange-traded funds) listed in India are the most practical way to correct this imbalance. With a single trade, you get exposure to global leaders and sectors you cannot otherwise own here. This is not an argument against India. Domestic markets have delivered enviable returns. But portfolios confined to India mean missing out on what the world has to offer. Why US ETFs deserve a place in your portfolio They diversify your risk. The Nifty 50 draws over 60 per cent of its weight from financials, IT and energy. The S&P 500, by contrast, spreads its weight across technology, healthcare, consumer and industrial leaders. That ensures the two indices rarely move in sync, diversifying risk. A look at the 10-year rolling returns of the Sensex and S&P 500 shows alternating leadership. At times, India has comfortably outperformed; at others, the US has pulled ahead. Exposure to both markets not only reduc

This article was originally published on October 01, 2025.