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US ETFs to buy: Indian investors looking to diversify beyond domestic equities may consider adding exposure to US markets, particularly as currency fluctuations and geopolitical uncertainty continue to influence investment returns. In its Samvat 2083 investment strategy, Samco Wealth has recommended two US-listed exchange-traded funds (ETFs) as long-term portfolio hedges: the Energy Select Sector SPDR Fund (XLE) and the Health Care Select Sector SPDR Fund (XLV).
The recommendations target two risks that affected Indian investors during the previous Samvat — rising crude oil prices and a weakening rupee. Samco has assigned potential upside of 47% to XLE and 60% to XLV, with a suggested holding period of at least two years.
Benchmark indices Sensex and Nifty closed in positive territory on Monday, the first day of Samvat 2083, supported by easing crude oil prices and buying interest in heavyweight banking and financial stocks.
The 30-share BSE Sensex advanced 107.25 points, or 0.13%, to finish at 81,106.65. During the session, the index gained as much as 340.01 points, or 0.41%, to touch an intraday high of 81,339.41. Similarly, the NSE Nifty 50 climbed 58.25 points, or 0.23%, to settle at 25,044.65.
Samvat 2082 was a difficult year for Indian equities, with the Nifty falling 10.9% from 25,868.60 on Muhurat Trading in 2025 to 23,053.10 on October 30, 2026. The Sensex declined 11.8% over the same period. Meanwhile, global assets delivered stronger returns. The S&P 500 gained 12.5% in dollar terms and 21.9% in rupee terms, while Brent crude surged 91.8% and the rupee depreciated 8.3%.
Samco said the US-Iran conflict pushed crude prices above $100 a barrel for extended periods, while the rupee weakened to record lows. It believes Indian equities are now attractively valued relative to gold but recommends maintaining global exposure to protect portfolios against oil and currency risks. Its two US ETF picks are designed to provide that hedge.
An exchange-traded fund is an investment fund listed on a stock exchange that holds a basket of securities tracking a particular index, sector or investment theme. A US-listed sector ETF provides investors with exposure to a group of American companies operating in a specific industry without requiring them to buy each stock individually.
Samco's two recommendations focus on energy and healthcare companies included in the S&P 500. Both are dollar-denominated investments, offering Indian investors an additional source of currency diversification. The report notes that returns depend on both the ETF's price movement in dollars and changes in the USD/INR exchange rate.
Resident Indian individuals can invest in overseas securities under the Reserve Bank of India's Liberalised Remittance Scheme (LRS). Investors can access US investment categories through platforms that facilitate overseas investing. Samco said it launched US equity recommendations on its trading app in March 2026, with defined entry levels, targets, stop-losses and holding periods.
Investors should account for currency movements, overseas investment rules, applicable charges and taxation before investing. Samco also advises checking its app for any revisions to recommendation levels.
XLE invests in energy companies included in the S&P 500, covering integrated oil majors, exploration and production companies, refiners and oilfield service providers. Its largest holdings include ExxonMobil and Chevron.
Samco considers the ETF a hedge against rising crude oil prices. Higher oil prices can hurt India by weakening the rupee, increasing inflation and putting pressure on corporate margins. Energy companies, however, can benefit from higher oil prices through improved earnings and cash flows.
The report highlighted that XLE gained approximately 55% in dollar terms during Samvat 2082, when Brent crude rose 92% and the Nifty declined 11%. Its dollar denomination also offers protection against rupee depreciation. Samco recommended accumulating XLE within the $68.50-$71.50 range, with a long-term target of $102.70.
XLV provides exposure to healthcare companies in the S&P 500, including pharmaceutical companies, health insurers, medical-device makers and biotechnology businesses.
Samco views XLV as a defensive investment and a hedge against further rupee weakness. Healthcare demand tends to be less dependent on economic cycles, while the dollar-denominated investment can help protect the rupee value of an investor's overseas holdings. The report also pointed to healthcare's growing prominence in the US market as investors shifted away from technology stocks. XLV gained approximately 27% in dollar terms during Samvat 2082.
The ETF was trading at a fresh 52-week high, with its relative strength index (RSI) at 73, indicating short-term overbought conditions. Samco therefore recommended accumulating in tranches rather than investing the entire amount at once, within the $182-$188 buying range. Its long-term target is $295.95.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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