All Nifty 50 ETFs hold the same 50 stocks, so the best Nifty 50 ETF is the one that tracks the index closely and is cheap to buy and sell. On September 2026 data, Nippon India ETF Nifty 50 BeES leads on trading volume by a wide margin, while ICICI Prudential and Kotak have the lowest expense ratios and SBI has the most assets.
Below we compare ten Nifty 50 ETFs on cost, tracking, size, liquidity and price against NAV, using AMFI and NSE data. We also explain why the lowest fee doesn’t always mean the lowest cost, compare ETFs with Nifty 50 index funds using a worked example, and show how to check the iNAV before you place an order.
Nifty 50 ETF list: the main options compared
AMFI’s data listed 21 plain Nifty 50 ETFs on 30 September 2026. The ten below are the largest or most traded. TER is from AMFI’s latest filing as of 1 October 2026; AUM, tracking error and closing price versus NAV are for 30 September 2026; tracking difference is AMFI’s one-year figure from its August 2026 release; and traded value is the daily average on NSE over September 2026’s 21 trading days.
| ETF (NSE symbol) | TER | Tracking error | 1-yr tracking difference | AUM (₹ cr) | Avg daily traded value (₹ cr) | Price, 30 Sep (₹) | Close vs NAV |
|---|---|---|---|---|---|---|---|
| Nippon India ETF Nifty 50 BeES (NIFTYBEES) | 0.04% | 0.02% | -0.03% | 65,179 | 178.6 | 258.50 | +0.19% |
| SBI Nifty 50 ETF (SETFNIF50) | 0.05% | 0.02% | -0.05% | 2,03,017 | 25.9 | 244.45 | +0.26% |
| ICICI Prudential Nifty 50 ETF (NIFTYIETF) | 0.03% | 0.02% | -0.03% | 42,735 | 17.0 | 257.21 | +0.20% |
| HDFC Nifty 50 ETF (HDFCNIFTY) | 0.05% | 0.02% | -0.06% | 4,987 | 15.4 | 255.84 | +0.25% |
| Kotak Nifty 50 ETF (NIFTY1) | 0.03% | 0.03% | 0.00% | 3,352 | 7.9 | 252.00 | +0.26% |
| Mirae Asset Nifty 50 ETF (NIFTYETF) | 0.08% | 0.02% | -0.05% | 5,217 | 6.2 | 246.56 | +0.09% |
| UTI Nifty 50 ETF (NIFTYBETA) | 0.06% | 0.02% | -0.02% | 69,624 | 4.7 | 252.81 | +0.69% |
| Aditya Birla Sun Life Nifty 50 ETF (BSLNIFTY) | 0.05% | 0.05% | 0.00% | 3,171 | 4.0 | 26.85 | +1.13% |
| Axis Nifty 50 ETF (NIFTYAXIS) | 0.16% | 0.03% | -0.05% | 1,055 | 2.8 | 251.36 | +0.28% |
| Zerodha Nifty 50 ETF (NIFTYCASE) | 0.06% | 0.16% | Under 1 year old | 71 | 0.9 | 9.12 | +0.27% |
“Close vs NAV” compares NSE’s closing price with the fund’s end-of-day NAV. NSE’s closing price is an average of the last 30 minutes of trading, so gaps of 0.1–0.3% partly reflect timing. Larger gaps are more telling. TERs are rounded to two decimals and can change, so confirm them on the AMC’s factsheet.
What the numbers show
On cost and tracking, the big Nifty 50 ETFs are almost identical. Every one in the table had a tracking error of 0.05% or less except Zerodha’s newer fund, and the one-year tracking difference ranged from 0.00% to -0.06%. Over five years to 30 September 2026, Nifty BeES returned 6.33% a year against 6.37% for the Nifty 50 TRI, a gap of about 0.04 percentage points (AMFI data).
Liquidity is where they really differ. Nifty BeES averaged about ₹179 crore of trades a day in September 2026, nearly seven times SBI’s ETF and about 38 times UTI’s. Assets don’t explain this: UTI’s ETF holds more than Nifty BeES but trades a fraction as much.
Why the cheapest TER isn’t automatically the best
The TER is only one of three costs you pay. The other two are paid when you trade: the bid-ask spread (the gap between the best buy and sell prices on the exchange) and any premium over the fund’s real value. For a long-term holder, the gaps in TER are tiny next to these.
Suppose Arjun invests ₹2 lakh. The gap between a 0.03% and a 0.05% TER is ₹2,00,000 × 0.02% = ₹40 a year. If he buys a thinly traded ETF 0.5% above its NAV, he gives up ₹2,00,000 × 0.5% = ₹1,000 on day one, which would take 25 years of TER savings to recover. On 30 September 2026, two ETFs in our table closed well above NAV: Aditya Birla Sun Life’s by about 1.1% and UTI’s by about 0.7%, against 0.19% for Nifty BeES.
SEBI requires every ETF to have at least two market makers, brokers who keep posting buy and sell quotes. Even so, ETFs with more trading usually have tighter spreads and smaller premiums, because many buyers and sellers compete on price. We couldn’t verify live spreads for this article, so check the market depth yourself before you buy (steps below).
Unit price: a lower price per unit, like BSLNIFTY’s ₹26.85 or NIFTYCASE’s ₹9.12, doesn’t make an ETF cheaper. It only lets you invest a small sum more precisely. With Nifty BeES at ₹258.50 (its 30 September close), ₹10,000 buys 38 units for ₹9,823 and leaves ₹177 unused.
Tracking error vs tracking difference
These two figures are often confused. Tracking error measures how consistently the ETF moves with the index day to day; SEBI caps it at 2% a year for equity ETFs. Tracking difference measures how much return you actually lost against the index over a period, and it includes the TER, cash drag and trading costs inside the fund.
For a long-term investor, tracking difference is the more useful number. AMCs and AMFI publish tracking error daily and tracking difference monthly, for one, three, five and ten years.
Nifty 50 ETF vs Nifty 50 index fund
A Nifty 50 index fund holds the same stocks but is bought from the AMC at that day’s NAV, like any mutual fund. The trade-off is lower running costs for the ETF against more convenience for the index fund. Our guide to ETFs versus mutual funds covers the wider differences.
| Feature | Nifty 50 ETF | Nifty 50 index fund (direct plan) |
|---|---|---|
| Where you buy | On the stock exchange, through a broker | From the AMC, a platform or a distributor |
| Demat account | Required | Not required |
| Price | Market price during the day; can be above or below NAV | End-of-day NAV |
| TER (examples, Oct 2026) | 0.03%–0.05% for the largest ETFs | 0.10% (Navi), 0.19% (Motilal Oswal), 0.25% (UTI) |
| 1-yr tracking difference (Aug 2026) | -0.03% (Nifty BeES) | -0.18% (UTI), -0.22% (ICICI Prudential), -0.27% (HDFC) |
| Trading costs | Brokerage, spread, possible premium | None at purchase; check exit load |
| Automatic SIP | Only through broker features | Yes, standard SIP |
Worked cost example
Suppose Meera invests ₹10 lakh in one go and holds for 10 years. Assume, purely for illustration, that the Nifty 50 TRI returns 11% a year. Assume the ETF lags by 0.05% a year and costs 0.1% to buy and 0.1% to sell (brokerage plus spread), and the index fund lags by 0.25% a year with no trading costs.
- ETF: ₹10,00,000 less 0.1% = ₹9,99,000 invested. Growth at 10.95% for 10 years: 1.1095^10 = 2.8267, so ₹9,99,000 × 2.8267 ≈ ₹28,23,830. Less 0.1% on sale = ₹28,21,006.
- Index fund: growth at 10.75% for 10 years: 1.1075^10 = 2.7761, so ₹10,00,000 × 2.7761 ≈ ₹27,76,114.
The ETF ends about ₹44,900 ahead before tax, roughly 1.6% more money. The gap narrows if you pay more to trade, buy at a premium, or choose an index fund with a lower TER. You can try other figures with our lump sum calculator, and see why small yearly gaps grow over time in our explainer on the power of compounding.
If you invest a small amount every month and don’t have a demat account, an index fund’s automatic SIP may be worth the extra 0.1–0.2% a year. If you invest larger sums and are happy to place orders yourself, a liquid Nifty 50 ETF is usually cheaper.
How to check iNAV before buying
The iNAV (indicative NAV) is a live estimate of what one ETF unit is worth, based on current prices of the stocks it holds. SEBI requires it to be shown on the exchange and updated within 15 seconds for equity ETFs. Checking it takes a minute:
- Open the ETF’s quote page on the NSE website or the AMC’s website during market hours and note the iNAV.
- Compare it with the last traded price. For a liquid Nifty 50 ETF, the two should usually be within a fraction of a percent.
- Open the market depth in your broker’s app and look at the best buy and sell prices. A gap of a few paise is fine; a gap of several rupees is a warning.
- Place a limit order at or near the iNAV, not a market order.
- Avoid the first few minutes after the market opens, when quotes can be wide.
There is also a safety valve. Under SEBI’s 2022 passive-fund rules, if an ETF closes more than 1% below its NAV for seven trading days in a row, investors can redeem up to ₹25 crore directly with the AMC without an exit load.
Checklist for choosing a Nifty 50 ETF
- TER of about 0.10% or less.
- One-year and three-year tracking difference close to zero on AMFI’s site.
- Average daily traded value of at least a few crore rupees, and more if you invest large amounts.
- Market price close to iNAV when you check it.
- A fund house you are comfortable holding for many years, since switching ETFs later means selling and possibly paying tax.
On those tests, Nifty BeES, SBI Nifty 50 ETF, ICICI Prudential Nifty 50 ETF and HDFC Nifty 50 ETF were all worth shortlisting in September 2026. Nifty BeES suits larger or frequent trades best; the others cost slightly less or about the same. For more on what to look for in any ETF, see our guide to the benefits of ETF investing.
Common mistakes
- Picking by AUM alone. UTI’s Nifty 50 ETF is the second largest by assets but ranked seventh by trading value in our table.
- Using market orders. In a thin ETF a market order can fill well above fair value.
- Holding several Nifty 50 ETFs. They own the same stocks, so a second one adds paperwork, not diversification.
- Forgetting tax on switches. Moving from one Nifty 50 ETF to another is a sale. Gains are taxed at 20% if held for 12 months or less, and at 12.5% above ₹1.25 lakh a year after that. Our guide to reducing capital gains tax explains how to plan sales.
FAQ
Which is the best Nifty 50 ETF in India?
There is no single winner, because the large ETFs track the index almost equally well. Nippon India Nifty BeES had by far the most trading in September 2026, ICICI Prudential and Kotak had the lowest TERs at about 0.03%, and SBI had the most assets. For most investors, any of the top four is a sound choice if bought close to its iNAV.
Which Nifty 50 ETF has the lowest expense ratio?
Among the larger funds, ICICI Prudential Nifty 50 ETF and Kotak Nifty 50 ETF had TERs of about 0.03% in AMFI’s data at the start of October 2026. Nippon India Nifty BeES was 0.04% and SBI 0.05%. The differences amount to a few rupees a year per lakh invested.
Is a Nifty 50 ETF better than a Nifty 50 index fund?
It is usually cheaper to hold: Nifty BeES lagged the index by 0.03% over the year to August 2026, against 0.18–0.27% for the direct plans of three large index funds. An index fund is simpler if you want automatic SIPs and don’t have a demat account.
Can I do a SIP in a Nifty 50 ETF?
Yes, through your broker’s ETF SIP feature, which places a buy order on a set date, or by buying manually each month. You can only buy whole units, and brokerage may apply to each purchase. Our SIP calculator can help you plan the monthly amount.
How is a Nifty 50 ETF taxed?
Like shares and equity mutual funds. Gains on units held for 12 months or less are taxed at 20%. After 12 months, gains above ₹1.25 lakh a year (shared with your other equity gains) are taxed at 12.5%, plus 4% cess.
Ramesh Iyer is the pen name of the founder and editor of StocksInfo.AI, an independent investor in Indian equities, mutual funds and ETFs since 2020. Every article is researched from primary sources such as SEBI, AMFI, NSE and the Income Tax Department, and fact-checked before publishing. About us