Top Energy ETFs in India

Energy ETFs (Exchange-Traded Funds) have become a popular investment route for those looking to capitalise on India’s growing energy sector. These funds pool money from investors and track energy-related indices, providing exposure to a diversified basket of stocks involved in oil, gas, power generation, renewable energy, and related infrastructure. They offer a convenient and cost-effective way to invest in this dynamic sector without picking individual stocks.

With India’s ongoing focus on infrastructure development, clean energy transition, and energy independence, the energy sector is set for long-term growth. Top energy ETFs allow investors to benefit from these structural trends while spreading their risk. Whether you're looking to diversify your portfolio or tap into one of the economy's key growth drivers, energy ETFs present an efficient investment opportunity.
 

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ICICI Prudential Nifty Oil & Gas ETF Overview

The ICICI Prudential Nifty Oil & Gas ETF is a sector-focused exchange-traded fund that aims to track the performance of the Nifty Oil & Gas index. As of April 30, 2025, the ETF trades in the range of ₹11.21 to ₹11.38, with a 52-week range between ₹9.42 and ₹14.00. The fund has an AUM of ₹162 crore and a total expense ratio of 0.40%, making it a cost-effective option for investors. The ETF primarily invests in energy companies, with over 96% of its portfolio allocated to the energy sector. Major holdings include Reliance Industries (32.73%), ONGC (16.08%), Bharat Petroleum (9.07%), and GAIL (8.30%). The portfolio consists of 15 stocks, with 74.2% concentrated in the top five holdings. It has a P/E ratio of 13.51 and P/B of 1.50. Offering high exposure to India’s key energy players, this ETF suits investors seeking targeted energy sector growth.

Nippon India CPSE ETF Overview

The Nippon India CPSE ETF is a thematic exchange-traded fund that offers exposure to India's top-performing Central Public Sector Enterprises (CPSEs). With an AUM of ₹37,632 crore as of April 30, 2025, it stands as one of the largest ETFs in its segment. The ETF has a very low expense ratio of 0.07% and tracks its index with minimal tracking error (0.08). Its portfolio comprises 11 stocks, with a significant 86.8% allocation in the top five holdings: Power Grid (20.02%), NTPC (19.55%), Bharat Electronics (17.33%), ONGC (15.37%), and Coal India (14.53%). Sector-wise, the fund is heavily tilted towards energy (64.84%), followed by capital goods and materials. The ETF has a P/E ratio of 13.33 and a P/B of 2.03, with a one-year absolute return of 2.79%. This fund is suitable for investors seeking long-term exposure to profitable and dividend-yielding PSUs with potential for capital appreciation.

Aditya Birla Sun Life Nifty 50 ETF Overview

The Aditya Birla Sun Life Nifty 50 ETF is a low-cost, passively managed fund that aims to replicate the Nifty 50 Index. With an AUM of ₹3,062 crore and a remarkably low expense ratio of just 0.04%, it’s designed for cost-conscious investors seeking long-term wealth creation through blue-chip exposure. It comprises 50 of India’s largest and most liquid companies, with top holdings like HDFC Bank (13.07%), ICICI Bank (8.94%), Reliance Industries (8.12%), and Infosys (5.31%). Sector-wise, the fund is heavily tilted toward Financials (35.95%), Technology (11.91%), and Energy (11.85%). The ETF’s one-year absolute return stands at 8.92% with minimal tracking error (0.04), showcasing strong index alignment. It features a portfolio P/E of 22.07 and a P/B of 3.28. This ETF is ideal for investors looking to invest in the core Indian economy via a diversified large-cap basket, all while benefiting from transparency and liquidity.

Conclusion

Energy ETFs in India offer investors a smart, diversified, and cost-efficient way to tap into the growing energy sector. With exposure to companies spanning traditional oil & gas, utilities, and renewables, these ETFs provide balanced participation in India's long-term energy demand and infrastructure development. Their passive nature ensures lower management fees and transparency compared to actively managed funds.

As India transitions toward cleaner energy and expands its power infrastructure, Energy ETFs can serve as a strategic tool for both growth and stability. They suit investors looking for sector-specific exposure without the complexity of picking individual stocks. With a well-diversified portfolio and strong underlying fundamentals, Energy ETFs are worth considering in a long-term investment plan.