Best Nifty 50 ETFs in India by Returns

If you want index-like exposure to India’s blue-chips, Nifty-50 ETFs are the cheapest, most liquid route. Here are seven widely-held Nifty-50 ETFs, a short overview of each, and the numbers that matter like the expense ratio, tracking error and the ETF’s 3-year annualised return (CAGR).

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Quick market baseline

The Nifty-50 (Total Return Index) has delivered roughly ~13.9% p.a. (3-year CAGR) in the period used by most fund factsheets — this is the benchmark most Nifty ETFs aim to replicate.

How to read the numbers (short)

Expense ratio = annual fees charged by the ETF (lower usually better).

Tracking error = the annualised volatility of the difference between ETF returns and the index (lower = tighter replication). Factsheets often report 1-year and 3-year tracking error.

3-year CAGR = annualised return over the last 3 years; use this to compare each ETF to the Nifty benchmark. Where an ETF closely tracks the index its 3-year CAGR will be almost identical to the Nifty TRI shown above.

1) ICICI Prudential Nifty 50 ETF

Overview: One of the most liquid, large-AUM Nifty ETFs. It uses full replication and daily rebalancing to match the index.
Expense ratio: ~0.02% p.a. (direct plan / ETF class shown in factsheets).
Tracking error: ~0.02% (1-yr) / 0.03% (3-yr) — very low.
3-year CAGR: ~13.86% p.a. (ETF), benchmark ~13.90% p.a. — near-perfect replication.

2) Nippon India ETF Nifty 50 BeES (NIFTYBEES)

Overview: One of India’s oldest and most traded Nifty ETFs; full-replication approach and broad market maker support.
Expense ratio: ~0.04% p.a. (varies slightly over time).
Tracking error & 3-yr CAGR: The fund’s published 3-year CAGR is ~13.8% p.a., very close to the Nifty TRI, and tracking metrics on its factsheet show minimal deviation.

3) SBI Nifty 50 ETF

Overview: Large-size ETF with deep liquidity and frequent market-making; popular with both retail and institutional flows.
Expense ratio: 0.04% p.a.
Tracking error: 1-yr: 0.0167%, 3-yr: 0.0301%
3-year CAGR: ~13.83% p.a. (ETF) vs 13.90% p.a. (Nifty TRI). SBI’s factsheet shows the ETF tracking the Nifty closely.

4) HDFC Nifty 50 ETF

Overview: HDFC’s Nifty ETF is a standard full-replication product with clear factsheets and active market-maker support.
Expense ratio: ~0.05% p.a.
Tracking error & 3-yr CAGR: HDFC publishes very low annualised tracking error (annualised 12-month tracking error commonly reported around 0.03%) and a 3-year CAGR in the low-teens (factsheets show ~12–13% depending on the exact cut-off date).

5) Kotak Nifty 50 ETF

Overview: Another long-running ETF that uses index replication to deliver market returns at low cost. Popular for direct exchange trading.
Expense ratio: ~0.03–0.04% p.a.
Tracking error: Typically reported around 0.03% (factsheet reporting conventions vary by date). 3-year returns track the benchmark closely (within a few bps annualised).

6) UTI Nifty 50 ETF

Overview: UTI’s index ETF is another widely-distributed Nifty product that focuses on tight replication and simple structure.
Expense ratio: published at small fractions (commonly 0.03–0.05% depending on the series).
Tracking error & 3-yr CAGR: UTI factsheets report very low tracking errors (example factsheets show 1-yr tracking error in the hundredths of a percent and 3-yr tracking error similarly small) and a 3-year CAGR close to the Nifty TRI.

7) Motilal Oswal Nifty 50 ETF

Overview: Motilal Oswal’s Nifty ETF is another product designed for low-cost passive exposure and is commonly used by DIY investors.
Expense ratio: 0.05%
Tracking error & 3-yr CAGR: generally in line with the other large Nifty ETFs — small tracking error and 3-yr CAGR within a few basis points of the index.

Why most Nifty ETFs look very similar in returns

Because these ETFs use full-replication of the Nifty-50 and the underlying index is large and liquid, 3-year CAGRs across major Nifty ETFs converge. Differences you’ll see (and should care about) are: small cost differences (0.02%–0.05% p.a.), short-term tracking differences from trade timing, and occasional fractional cash holdings or corporate action timing. In practice a low expense ratio and low 3-year tracking error are the main selection criteria for long-term investors.

What to watch when choosing a Nifty-50 ETF

Expense ratio — small differences compound over time. The cheapest funds (e.g., expense ratios near 0.02%–0.03%) have an edge for buy-and-hold investors.

Tracking error — lower is better; 3-yr tracking errors in the 0.02%–0.04% range indicate excellent replication.

Liquidity / AUM — higher AUM and tight bid-ask spreads reduce trading cost; big ETFs (ICICI, SBI, Nippon) typically lead here.

Operational factors — creation/redemption process, market-maker support, and how the ETF handles corporate actions can matter for large subscriptions or intraday traders.

Conclusion — which ETF should you pick?

If your primary aim is simple, low-cost exposure to India’s blue chips, pick a Nifty-50 ETF with (a) a very low expense ratio (aim for the lowest available), (b) consistently tiny tracking error (look at the 1- and 3-year figures in the factsheet), and (c) sufficient liquidity/AUM so your trade costs are low.

ICICI Prudential, SBI and Nippon (NIFTYBEES) are reliable, low-cost and widely traded examples; HDFC, Kotak, UTI and Motilal Oswal provide similar index outcomes with small differences in cost and tracking. For reference, the Nifty-50 TRI’s ~13.9% p.a. (3-yr) number gives you the appropriate yardstick to judge each ETF’s 3-year CAGR. Always check the latest factsheet before investing — the numbers above are drawn from October–November 2025 factsheets and provider pages.