US tech remains Indian investors’ favourite, index ETFs gaining traction: Report

Further, investors continued to be net buyers with the buy volume two times the sell volumes during the same period.

Vested said that Tesla, Amazon, Apple, Microsoft, Google, Facebook, and Twitter were the top stocks traded on the platform.

“While investing in the top tech stocks has been popular, investors have also taken the ETF route, especially index ETFs, to diversify their portfolios and get exposure to the US markets. The Vanguard S&P 500 ETF (VOO) which tracks the S&P 500 index, and the Invesco QQQ ETF (QQQ) which tracks the Nasdaq-100, are among the top ETFs traded on the platform,” Vested said.

In March 2022, Vested launched do-it-yourself (DIY) Vests, which lets users create their own portfolios and invest in them. By the end of the June quarter, about 7,000 users had created over 11,000 DIY Vests on the platform.

The ProShares Bitcoin Strategy ETF, which enables investors to get exposure to Bitcoin, saw a 33% increase in buying volumes in Q2 compared with the previous quarter after the 30% tax on crypto gains came into effect on 1 April.

Viram Shah, CEO and co-founder, Vested Finance said, “The US markets have been volatile in the past few months due to the US Fed hiking interest rates, high inflation and the uncertainty due to the Russia-Ukraine crisis. We have also seen a massive sell-off in tech stocks. However, that has meant that many of the Big Tech stocks are now available at better valuations and investors are buying into the dip. Also, index ETFs are a low-cost way to get exposure to the markets and are a favourite with long-term investors.”

The users of Vested Finance are spread all over the country with Mumbai (10%), Bangalore (9%), Pune (5%) & Hyderabad (4%) being the top four cities.

“User interest in creating and investing in DIY Vests shows that Indian investors have matured considerably when it comes to investing in the US markets and are able to do their own research and create their own portfolios,” Shah added.

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