Indian investors hold steady in US markets amid 'chaos' in Q2 2025: Report

Financial tech company Vested cites its 140% growth in AUM to comment on 'remarkable resilience' of Indian investors

Indian investments in US equity markets in the second quarter of 2025 (Q2 2025) held steady amid the “chaos” of trade-tariff shocks, volatility and geopolitical uncertainty, said a report by financial technology platform Vested on Tuesday.

 

The company enables investors, primarily those in India, to access the US stock market. Its assets under management (AUM) grew 140 per cent to Rs 5,500 crore in Q2 2025 from Rs 2,200 crore the previous year. Average portfolio size crossed Rs 7 lakh.

 

“Amid this chaos, Indian investors on Vested didn’t just hold steady, they doubled down,” said the financial technology company’s Q2 2025 Global Investing Report.

 

Buy volumes rose 20.47 per cent quarter-on-quarter (Q-o-Q), “reflecting growing confidence in global investing”.

 

According to Vested, Indian investors displayed “remarkable resilience during the turbulence of Q2 2025”.

 

Alphabet, the parent company of Google, emerged as a favourite, with a 113 per cent surge in investors on the platform. Duolingo (language learning platform)’s stock saw its investor base skyrocket by 2,255 per cent on Vested, highlighting a move beyond just the traditional FAANG stocks, the five major US technology companies: Facebook (Meta), Amazon, Apple, Netflix, and Google.  

 

Smarter, calmer, more global

 

Instead of retreating during April’s tariff-driven selloff, many investors trimmed their positions in volatile names such as Tesla and Nvidia, only to re-enter later as markets stabilised.

 

The report notes growing interest in healthcare majors like UnitedHealth and Novo Nordisk, alongside niche innovation plays such as CRISPR Therapeutics and IONQ Inc.

 

Diversification is also spreading geographically. With the US dollar down 7 per cent Q-o-Q and divergent central bank policies, Indian investors increased allocations to Europe (VGK), China (FXI, CWEB), and Brazil (EWZ).

 

ETFs preferred

 

Exchange-traded funds (ETFs) have become the preferred vehicle for global diversification:

 

-QQQM investor count jumped 131 per cent Q-o-Q.

 

-SOXX (semiconductors) grew 101 per cent.

 

-IWM (small-cap ETF) investor base soared 622 per cent.

 

Healthcare-focused XLV saw a staggering 1,087 per cent increase in unique investors, fuelled by interest in GLP-1 drug makers and AI-led diagnostics.

 

Even dividend-focused SCHD, short-term bond fund VUSB, and silver ETF SLV saw steady inflows.

 

“This quarter wasn’t about momentum, it was about method,” said Vested’s report. The 140 per cent annual rise in investing reflects a behavioural shift: Indian investors are diversifying portfolios and repositioning during volatility instead of retreating, it said.