INDA ETF returns lag its index due to hidden Indian capital gains taxes reducing NAV.

The iShares MSCI India ETF (INDA) has consistently underperformed its benchmark MSCI India Index over the past decade, returning 5.96% annually versus the index's 7.20%. This gap is partly due to capital gains taxes paid within the fund on Indian stock transactions, which reduce the fund's net asset value (NAV) but do not appear as explicit fees or on tax forms. Other factors like transaction costs and cash holdings also contribute to the tracking difference. Investors should recognize that this tax cost is a normal part of owning Indian shares through U.S.-based funds and evaluate INDA's returns accordingly.

The iShares MSCI India ETF (INDA) trades at USD 46.85 on Pluang as of Oct 29, 2026 04:21 WIB, showing a modest 0.24% gain in the last day. Despite the fund's long-term underperformance relative to its benchmark, INDA maintains a market cap of $5.75 billion and a steady investor interest with 100% buy orders on Pluang. This ongoing demand highlights how investors continue to engage with Indian equity exposure through U.S.-listed funds.