The Invesco QQQ Trust (QQQ) is one of the most widely traded ETFs in the world. It tracks the Nasdaq-100 Index, providing concentrated exposure to the 100 largest non-financial companies listed on the Nasdaq stock exchange.
However, for long-term Indian investors, QQQ carries a critical structural risk: the US Estate Tax. If you hold US-domiciled assets like QQQ and your holdings exceed $60,000, your estate faces US estate tax at progressive rates reaching 40% upon your death. On a $500,000 holding that works out to roughly 29% of the portfolio.
This blog gives you all the information you need about the top UCITS alternatives. These alternatives have similar underlying assets and track the same index, providing the same growth and exposure without the risk of the US Estate Tax.
Table of contents
- Why Indians are looking for UCITS alternatives to QQQ
- Popular UCITS alternatives for QQQ
- Invest in UCITS ETFs with Paasa
Why Indians are looking for UCITS alternatives to QQQ
Indian investors are shifting to UCITS alternatives because they solve the tax risks and inefficiencies of US ETFs like QQQ while providing the exact same exposure.
- Estate Tax Protection: UCITS funds are typically domiciled in Ireland. They are not considered "US-situs" assets, meaning they are 100% exempt from US Estate Tax.
- Tax Deferral (Accumulation): Unlike QQQ, which forces taxable cash dividends on you, many UCITS funds offer "Accumulating" classes that reinvest dividends automatically. This defers your Indian tax liability until you sell the fund, and converts what would have been slab-rate dividend income into capital gains.
To learn more about UCITS ETFs and why Indian investors are choosing them, read our guide on UCITS ETFs.
Popular UCITS alternatives for QQQ
Here are the top three UCITS funds that track the Nasdaq-100.
1. Invesco EQQQ Nasdaq-100 UCITS ETF
This is the European "twin" of QQQ, managed by the same provider (Invesco). It holds the exact same underlying assets, the top 100 non-financial US companies, through physical replication.
It is among the most liquid Nasdaq-100 options in Europe, making it suitable for investors who need tight spreads or who prefer receiving cash dividends.
- Ticker: EQQQ.L
- Total Expense Ratio (TER): 0.30%
- Structure: Distributing (Pays dividends in cash)
- Top Holdings: NVIDIA, Apple, Microsoft, Amazon, Tesla.
2. iShares Nasdaq 100 UCITS ETF
For long-term Indian investors, this fund is often preferable to EQQQ due to its Accumulating (Acc) structure.
Instead of paying out dividends (which would be taxed at your income slab in India), the fund uses that cash to buy more shares internally. This creates a "tax-deferred" compounding effect that significantly boosts net returns over a 10-20 year horizon.
- Ticker: CNDX.L
- Total Expense Ratio (TER): 0.33%
- Structure: Accumulating (Reinvests dividends)
- Top Holdings: NVIDIA, Apple, Microsoft, Amazon, Tesla.
3. Amundi Core Nasdaq-100 Swap UCITS ETF
This is the cost leader among the UCITS options. At 0.22%, it undercuts both EQQQ (0.30%) and the iShares fund, and sits just two basis points above QQQ itself, while carrying none of QQQ's estate tax exposure. Formerly the Lyxor Nasdaq-100 UCITS ETF, it is now managed by Amundi and domiciled in Luxembourg rather than Ireland, which places it equally outside US estate tax reach.
Unlike the other two, this fund does not hold the underlying shares. It uses a swap, an agreement with a counterparty to deliver the index return, which is why "Swap" appears in the name. Synthetic replication can track the Nasdaq-100 more tightly, but it introduces counterparty risk in place of direct ownership of the stocks. We cover the trade-off in our guide on physical versus synthetic UCITS ETFs.
- Ticker: NASD.L
- Total Expense Ratio (TER): 0.22%
- Structure: Accumulating (Reinvests dividends)
- Top Holdings: NVIDIA, Apple, Microsoft, Amazon, Tesla.
Invest in UCITS ETFs with Paasa
Paasa is a global investing platform designed for Indian investors. We provide direct access to over 10 global exchanges, including the United States, United Kingdom, Switzerland, Hong Kong, Germany, France, Canada, Netherlands, Japan, and Singapore.
This means you are not restricted to just US ETFs like the QQQ; you can also buy tax-efficient UCITS equivalents using Paasa.
The Compliance Advantage
Paasa makes global investing easy and also removes the compliance friction with a specialized layer built specifically for Indian residents:
- Schedule FA Reporting: Exact reports you need for your Indian tax returns, eliminating the need for manual calculations.
- Tax Filing & Advice: Access to expert tax advice and seamless filing support.
- FEMA & LRS Integration: Guidance on FEMA regulations and LRS limits to ensure compliance.
Paasa also provides access to managed strategies, along with remittance, FEMA and tax advisory.
