Indian investors continue to crave exposure to the world’s biggest stocks, especially after the strong performance of the international markets and recent tech rallies. But as mutual funds still cannot make new overseas investments, most usual paths to global markets have disappeared.

With limited choices left, investors are flocking to the global exchange-traded funds (ETFs) on Indian exchanges that track global indices.

There’s just one problem. These ETFs are now trading at premiums. And those premiums could ultimately eat into returns, even if the underlying global stocks continue to perform well.

“If an ETF’s market price is much higher than its net asset value (NAV), investors in India are paying a premium, meaning you get less exposure for your rupee, and if the premium falls, yo

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