Best ETFs in India for September 2025: CPSE ETF, Bharat 22 ETF Based on 5-Yr CAGR

Exchange Traded Funds (ETFs) have become one of the most popular investment options for Indian investors, offering the flexibility of stock-like trading with the diversification benefits of mutual funds. Whether it’s equity, debt, or gold, ETFs provide access to various asset classes at relatively low costs.

In this article, we’ll look at the best-performing ETFs in India for September 2025, ranked by their 5-year CAGR.

Best ETFs in India for September 2025

Note: Data as of August 26, 2025. Funds are ranked based on 5Y CAGR.

Overview of the Best ETFs in India for September 2025

1. CPSE ETF

The scheme seeks to provide returns that, before expenses, closely correspond to the total returns of the securities represented by the CPSE Index, by investing in its constituents in the same proportion.

Key Metrics:

• Expense Ratio: 0.07%
• Tracking Error: 0.08%

2. Bharat 22 ETF

The scheme invests in constituents of the Bharat 22 Index in the same proportion, aiming to provide returns (before expenses) that closely match the total returns of the underlying index.

Key Metrics:

• Expense Ratio: 0.07%
• Tracking Error: 0.04%

3. Nippon India ETF Nifty Bank BeES

The scheme aims to generate returns commensurate with the performance of the Nifty Bank Index (subject to tracking error), by investing at least 90% of its total assets in the stocks of the index.

Key Metrics:

• Expense Ratio: 0.19%
• Tracking Error: 0.02%

5. Kotak Nifty Bank ETF

The scheme seeks to provide returns that closely correspond to the total returns of the Nifty Bank Index (subject to tracking error) by investing in its stocks.

Key Metrics:

• Expense Ratio: 0.15%
• Tracking Error: 0.02%

Conclusion

ETFs offer a transparent and cost-effective way to invest in different sectors and indices. While equity ETFs like CPSE ETF and Bharat 22 ETF have shown strong long-term performance, sector-specific and global ETFs like Nifty Bank ETFs and NASDAQ 100 ETF provide more focused exposure. 

Investors should consider their investment goals, risk appetite, and asset allocation strategy before investing in ETFs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks. Read all scheme-related documents carefully.